Nominal wages react slowly to changes in output for the following reasons, except one. Which is the exception?
a. The nominal wage may be fixed and independent of output because of labor contracts that last up to three years.
b. The real wage remains constant despite changes in output.
c. Firms with a reputation for paying stable nominal wages will find it easier to attract new workers.
d. Changing the nominal wage can be costly to firms.
e. Nominal wages may be set by slow-moving corporate bureaucracies.
B
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Most economists believe that labor unions significantly increase the overall unemployment rate in the United States
Indicate whether the statement is true or false
Pension plans in which employer contributions are set by the plan and benefits depend on the performance of the assets in the plan is called a
A) defined benefit plan. B) defined contribution plan. C) a fully vested plan. D) an unfunded plan.
Technical and organizational change
A) typically reduces prices by increasing the supply of the product, ceteris paribus. B) typically reduces prices by decreasing the demand for the product, ceteris paribus. C) typically increases prices by increasing the demand for the product, ceteris paribus. D) typically increases prices by decreasing the supply for the product, ceteris paribus.
The lower the price, the lower the producer surplus, all else equal
a. True b. False Indicate whether the statement is true or false