In the classical model,
a. markets do not automatically clear.
b. business demand for loanable fund exceeds business planned investment spending.
c. business demand for loanable fund is equal to business planned investment spending.
d. businesses engage in interest-free borrowing.
e. the government's demand for funds is downward sloping.
C
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A minimum wage in the formal sector will likely
a. reduce the number of formal-sector workers b. increase labor supply and lower wages in the informal sector c. encourage rural-urban migration d. lead to increased mechanization in the formal sector e. all of the above
A closed shop and a union shop differ primarily in that
a. nonunion workers can retain employment in a union shop, but not in a closed shop b. nonunion workers can retain employment in a closed shop, but not in a union shop c. union members are not permitted to work in a closed shop, and a worker must be a union member to work in a union shop d. in a closed shop, workers must be union members before they are hired but not in a union shop e. workers must first be union members to work in a union shop