Featherbedding refers to
A) training programs initiated by the unions to make the less-skilled workers more productive.
B) attempts by management to reduce workers' interest in a union.
C) the practice that forces employers to use more labor than they would otherwise.
D) the amount of the union premium.
Answer: C
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A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A) decreased from $1000 to $500. B) increased from $1000 to $2000. C) decreased from $2000 to $1000. D) increased from $500 to $2000.
The idea that potential GDP is the sustainable upper limit of production means that
A) real GDP may be temporarily larger than potential GDP, but not permanently. B) the economy is operating environmentally efficiently. C) real GDP may be temporarily less than potential GDP. D) inflation must always occur in a growing economy. E) unemployment can only temporarily be zero in a healthy economy.