When industrial unions negotiate with an entire industry, wage gains come at the cost of _____

Group of answer choices

longer working hours.

worse products.

labor mobility.

worse working conditions.

reduced total employment.

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Question 27

4pts

Exhibit 12.6

Refer to Exhibit 12.6, which shows the activity for a particular type of labor. If a union negotiates a wage W':

Group of answer choices

the market wage is W'and there is an excess quantity of labor supplied equal to E.

the market wage is W and there is an excess quantity of labor supplied equal to E'.

the market wage is W and there is an excess quantity of labor supplied equal to E''.

the market wage is W'and there is an excess quantity of labor supplied equal to E''.

the market wage is W and there is an excess quantity of labor supplied equal to E.

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Question 28

4pts

Because leisure is a normal good, an increase in income _____

Group of answer choices

decreases the demand for leisure time and reduces the amount of time allocated to market work.

decreases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work.

increases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work.

has no impact on the demand for leisure time.

increases the demand for leisure time and reduces the amount of time allocated to market work and nonmarket work.

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Question 29

4pts

Which of the following would not shift the demand curve for union labor to the right?

Group of answer choices

an increase in the supply of products that compete with union-made products

an appeal to consumers to buy only union-made products

an increase in labor productivity by lowering quit rates

an increase in the demand for union-made goods

an increase in labor productivity through better labor-management relations

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Question 30

4pts

Craft unions attempt to increase wages in their profession by _____

Group of answer choices

increasing labor demand.

decreasing labor demand.

negotiating exclusive dealing contracts.

decreasing labor supply.

increasing labor supply.

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Question 31

4pts

The market value of Pharmashot Inc., whose securities are publicly traded, can be found by _____

Group of answer choices

adding the total value of its outstanding stock to the total value of its outstanding bonds.

subtracting the total value of its outstanding stock from the total value of its outstanding bonds.

dividing the number of shares issued in the market by the price of the stock.

subtracting the total value of its outstanding bonds from the total value of its outstanding stock.

multiplying the price of its stock by the number of shares issued in the market.

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Question 32

4pts

If the interest rate increases, _____

Group of answer choices

a firm should acquire more capital.

a firm should decrease the amount of capital it owns.

the supply of loanable funds will increase.

the cost of borrowing will increase.

the cost of saving will increase.

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Question 33

4pts

What is the relationship between the duration of a loan and the interest rate charged called?

Group of answer choices

the duration structure of interest rates

the term structure of interest rates

the yield structure of interest rates

the risk structure of interest rates

the collateral structure of interest rates

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Question 34

4pts

If risk, administrative costs, and tax treatments are the same, a borrower will expect to pay _____ interest rate for a 10-year loan, and _____ interest rate for a 5-year loan.

Group of answer choices

ahigher; a lower

the same; the same

alower; a higher

alower; the same low

ahigher; the same high

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Question 35

4pts

The present value of a given payment will be lower _____

Group of answer choices

if the rate of inflation is high when the payment is received.

the sooner the payment is to be received.

the lower the prevailing interest rate.

if the payment is made in cash.

the further in the future the payment is to be received.

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Question 36

4pts

The opportunity cost of producing capital goods is a(n) _____

Group of answer choices

decrease in the amount of capital available for future use.

increase in the stock of capital available for future use.

increase in the rate of interest.

decrease in the current production of consumption goods.

increase in the future production of consumption goods.

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Question 37

4pts

The patent and copyright systems _____

Group of answer choices

help easily transfer intellectual property rights from the creator to the user.

help increase the incentives to create new intellectual property.

help make the market for intellectual property more competitive.

are forms of intellectual property.

reduce the cost of duplicating intellectual property.

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Question 38

4pts

Securities exchanges pay no attention to hedge funds.

Group of answer choices

True

False

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Question 39

4pts

What amount of money, if saved at an interest rate of 5 percent, would accumulate to $105 one year from now?

Group of answer choices

cannot be determined.

$5 next year.

$100 next year.

$100 today.

$105 today.

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Question 40

4pts

If the interest rate is 8 percent, $50 today is worth _____ next year.

Group of answer choices

$50

$54

$50.68

$62

$4.32

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Question 41

4pts

Which of the following is not true of dumping?

Group of answer choices

A major difficulty with dumping by firms in other countries is that it drives up prices for the domestic consumer.

Predatory dumping is often aimed at driving domestic producers out of business.

Critics of dumping recommend applying a tariff as a correct antidumping measure.

In the country where products are dumped, consumer surplus grows as a result of the dumping.

Dumping involves the selling of a product by foreign producers at a price lower than that in their own countries.

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Question 42

4pts

For each fancy dress Cafilla produces, it gives up the opportunity to make 50 pounds of cheese. Bodoni can produce one fancy dress for every 100 pounds of cheese it produces.If specialization and trade were to occur between these two countries, which of the following would be consistent with the theory of comparative advantage?

Group of answer choices

Bodoni has the comparative advantage in dresses and cheese.

Cafilla has the comparative advantage in only cheese.

Cafilla has the comparative advantage in only dresses.

Cafilla has the comparative advantage in dresses and cheese.

Bodoni has the comparative advantage in only dresses.

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Question 43

4pts

Table 19.3

Domestic Supply and Demand

for Tulips in the Netherlands

Demand

Supply

Q

P($)

Q

P($)

12,000

0

6,000

0

10,000

1

7,000

1

8,000

2

8,000

2

6,000

3

9,000

3

4,000

4

10,000

4

Refer to Table 19.3, which shows the demand, supply, and price of tulips in the Netherlands. If the world price of tulips is $4 and there are no trade restrictions, the Netherlands will _____

Group of answer choices

produce 8,000 and consume 8,000 tulips.

import all the tulips it consumes.

produce 10,000, consume 4,000, and import 6,000 tulips.

consume only some of the tulips it produces.

produce 10,000 and consume 10,000 tulips.

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Question 44

4pts

Whichtrade protection can help lessen shocks to the economy and allow for an orderly transition to a new industrial mix?

Group of answer choices

the antidumping argument

the national defense argument

the declining industries argument

the jobs and income argument

the infant industry argument

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Question 45

4pts

The largest categories of U.S. imports in 2016 were _____, which accounted for _____ each of total imports.

Group of answer choices

capital goods and services; 19 percent

industrial supplies and consumer goods; 16 percent

consumer goods and services; 22 percent

consumer goods and food; 5 percent

capital goods andindustrial supplies; 22 percent

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Question 46

4pts

Exhibit 19.3

Refer to Exhibit 19.3, which shows the supply of a product in the United States. If the government establishes a sugar quota of Q to Q', the supply curve combining U.S. production and imports becomes _____ at the world price of _____ and remains horizontal until the quantity supplied reaches _____.

Group of answer choices

horizontal; P'; Q'

vertical; P'; Q'

horizontal; P; Q'

vertical; P; Q

horizontal; P; Q

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Question 47

4pts

Which of the following is a type of trade restriction?

Group of answer choices

autarky

diminishing marginal returns

health, safety, or technical standards

diseconomies of scale

increasing the opportunity cost of production

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Question 48

4pts

Terms of traderefers to_____

Group of answer choices

the price of a good in a country after the imposition of a tariff.

the maximum amount of credit that a country can borrow for a particular line of credit.

the opportunity cost of producing a good.

the quantity of a good demanded by U.S. consumers at a market-clearing price.

the quantity of one good exchanged for a unit of another good.

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Question 49

4pts

The General Agreement on Tariffs and Trade (GATT) was established in _____

Group of answer choices

1947 to reduce trade restrictions.

1870 to protect U.S. industries and decrease world trade.

1990 to develop a free trade zone across 50 states.

1921 to manage legal and accounting requirements for U.S. tariffs and quotas.

1973 to increase trade restrictions, after OPEC significantly raised oil prices.

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Question 50

4pts

Which of the following results in international specialization?

Group of answer choices

differing consumer tastes

diminishing returns to a variable factor of production

differences in the benefits that consumers and producers get from the exchange of goods and services

diseconomies of scale in production

a high world price for a good