A cutting-edge biotech firm is hiring recent college graduates. To attract the very best applicants and to increase worker effort the firm is paying a wage 20% higher than the market wage for entry level employees in this industry. What is the term for the wage paid in this example?
efficiency wage
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How does an increase in the short-term interest rate affect peoples' desire to hold real money balances?
A) People will hold more money to compensate for the higher interest rate. B) People will hold more money in anticipation of higher inflation. C) People will hold less money since they would be sacrificing more interest by holding money. D) People will hold less money since it is not worth as much.
A prisoner's dilemma can be described as a situation in which
a. a decision maker is uncertain about the potential punishment for something done in the past b. an individual decision maker finds it in his best interest to pursue a course of action that can lead to a less than desirable outcome for the group c. producers act so as to avoid maximizing profits because of government retaliation d. individual firms seeks to maximize their own profits with no regard for the group e. the summation of individual demand curves creates an inelastic demand curve facing the industry
Compared to the Keynesian transmission mechanism, the monetarist transmission mechanism is
A) direct. B) indirect. C) inverse. D) none of the above
In order for spot checks to work:
A. the time of the checks must not be predictable. B. employees must be monitored continually. C. Both employees must be monitored continually and the time of the checks must not be predictable are correct. D. None of the answers are correct.