An efficiency wage is a wage that:
A. most unionized workers negotiate to get rid of.
B. is set right at market equilibrium which creates an efficient labor market.
C. the government sets deliberately above the market rate to increase equity.
D. is deliberately set above the market rate to increase worker productivity.
Answer: D
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Hyperinflation is defined as periods of
A) inflation over 25 percent per year B) negative price changes. C) low inflation. D) inflation over 50 percent per month. E) inflation under 10 percent per year.
Suppose a product produces substantial spillover costs. If the government adopts a policy that forces producers to bear those costs: a. the equilibrium quantity of the product exchanged will fall. b. the initial misallocation of resources will be corrected
c. the equilibrium price of the product will rise. d. all of the above will be true.
Which statement is true?
A. Scarcity is simply a lack of money. B. The United States' society has been so affluent in the last 50 years that scarcity is only a minor problem. C. The economic problem refers to the problem of poverty. D. If scarcity did not exist there would be no need to economize.
The number of central banks that exist in the world today is:
A. over 50 but less than 100. B. less than 10. C. about 250. D. over 180.