If a firm is a union shop, then
A) a worker may elect to either join or not join the union.
B) only workers who have been union members for two years may be employed.
C) only union members may be employed by the firm.
D) a non-union worker may be hired but must join the union within a certain time period.
D
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If demand is inelastic and the price of a product decreases by 100 percent, then
A) the change in quantity demanded is less than 100 percent. B) the change in quantity demanded is equal to 100 percent. C) the change in quantity demanded is greater than 100 percent. D) the decrease in quantity demanded is greater than 0 percent.
If potential output for an economy equals $8 billion and actual output equals $7 billion, then this economy's output gap should be expressed as:
A. $1 billion. B. ?12.5 percent. C. 12.5 percent. D. ?$1 billion.