When a union bargains successfully with employers, in that industry,()
A. both the quantity of labor supplied and the quantity of labor demanded increase.
B. both the quantity of labor supplied and the quantity of labor demanded decrease.
C. the quantity of labor supplied increases and the quantity of labor demanded decreases.
D. the quantity of labor demanded increases and the quantity of labor supplied decreases.
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Efficiency-wage theory suggests that paying()
A. low wages might be profitable because they raise the efficiency of a firm’s workers.
B. low wages might be profitable because they lower the efficiency of a firm’s workers.
C. high wages might be profitable because they raise the efficiency of a firm’s workers.
D. high wages might be profitable because they lower the efficiency of a firm’s workers.
Diminishing marginal utility of wealth implies that the utility function is()
A. upward-sloping and has decreasing slope.
B. upward-sloping and has increasing slope.
C. downward-sloping and has decreasing slope.
D. downward-sloping and has increasing slope.
Whenever the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing ()
A. a conjectural mistake.
B. a fundamental mishap.
C. a speculative bubble.
D. a neuroeconomic flaw.
The value of a stock is based on the ()
A. present values of the dividend stream and final price. So, the value of a stock rises when interest rates rise.
B. present values of the dividend stream and final price. So, the value of a stock falls when interest rates rise.
C. future values of the dividend stream and final price. So, the value of a stock rises when interest rates rises.
D. future values of the dividend stream and final price. So, the value of a stock falls when interest rates rise.
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