When quantity supplied is very responsive to a change in price, supply is

The presence of union wages leads to

A) a fall in the real wage rate as more people are hired. B) less job search as more workers are hired. C) job rationing because the real wage exceeds the equilibrium real wage. D) a fall in the real wage rate as fewer people are hired. E) lower unemployment because workers do not want to lose the high union wage they are being paid.

If Bonnie can produce either 10 hats or 20 scarves in a month, and Phil can produce either 5 hats or 10 scarves in a month then

A) Bonnie is more efficient at producing hats, compared to Phil. B) Bonnie is more efficient at producing scarves, compared to Phil. C) both A and B above are true. D) none of the above is true.