If a union negotiates a wage above the market equilibrium, each firm's
a. supply of labor is greater than its marginal resource cost
b. supply of labor is less than its marginal resource cost
c. supply of labor is equal to its marginal resource cost
d. demand for labor is less than its marginal resource cost
e. demand for labor is greater than its marginal resource cost
C
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The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore
A) widgets and McBoover devices are substitutes. B) widgets and McBoover devices are complements. C) widgets are a normal good. D) McBoover devices are a normal good.
Suppose that one-year Treasury bills yield 4 percent in the United States and 5 percent in Germany. Investors will be indifferent between them if they expect the dollar over the next year to
A) depreciate against the euro by approximately 1 percent. B) appreciate against the euro by approximately 1 percent. C) depreciate against the euro by exactly 20 percent. D) appreciate against the euro by exactly 20 percent.