We would expect unions to have a more difficult time negotiating higher wages for their members when
A) labor represents a small portion of total costs.
B) the product produced makes up a small portion of families' budgets.
C) the product produced has several close substitutes.
D) there are not good substitutes for labor in the production process.
C
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According to the Application, large increases in per capita income in the United States over the past 30 years have
A) led to a higher divorce rate. B) not increased happiness levels. C) had the greatest impact on retired people. D) lowered stress levels.
As world economies start to recover from the 2008 financial crisis and firms expect profits to increase
A) the price level in the U.S. will decrease as firms increase investment. B) the U.S. short-run aggregate supply curve immediately will shift rightward. C) investment will increase and there will be a movement up along the aggregate demand curve. D) both investment and aggregate demand will increase.