For economic efficiency, which of the following conditions should be met?
A. Scarcer goods should have lower prices.
B. More abundant goods should have lower prices.
C. More abundant goods should have higher prices.
D. All goods should have equal prices.
Answer: B
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Which of the following is the best example of a monopolistically competitive industry?
A) land-based long distance telephone service B) wheat farming C) the local electricity producer D) manufacturing of shirts E) cable television
An industry with a strong union (e.g., UAW)
a. will increase wages in the nonunion sector of the industry b. will increase employment for union workers when wages increase c. can force employers to hire all unions members regardless of the wage d. can increase the demand for union workers by increasing turnover and reducing productivity e. can bargain for wages that are greater than the market's equilibrium wage