Suppose new electronic devices make it easier to monitor the effort levels of workers. What happens to the NSC curve in the efficiency wage model?
A) Shifts upward
B) Shifts downward
C) Remains the same
D) The NSC curve remains the same, and the labor supply curve shifts leftward because shirking workers will leave the labor force.
B
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If the MPC = .75, the spending multiplier is:
a. 4. b. 5. c. 1.33. d. 1.20. e. .25.
Xanfix sells wrenches and screwdrivers. It sells both products at the same price of $9.66 per unit. The firm calculates that the income elasticity of demand for wrenches is 1.5, while the income elasticity of demand for screwdrivers is 2.5 . If the overall consumer income is expected to increase by 6.8 percent in the year ahead, the company should: a. increase the production of both products,
but it should increase the production of screwdrivers by a greater amount than the production of wrenches. b. increase the production of both products, but it should increase the production of wrenches by a greater amount than the production of screwdrivers. c. increase the production of wrenches and decrease the production of screwdrivers. d. increase the production of screwdrivers and decrease the production of wrenches.
Which of the following is most likely to cause the productivity of labor to increase?
a. higher money wages b. a higher rate of investment in human and nonhuman capital c. more flexible working hours and improved retirement plans d. an increase in the proportion of the workforce that belongs to a labor union
If purchasing-power parity holds, a bushel of rice costs $10 in the U.S., and the nominal exchange rate is 25 Thai baht per dollar, what is the price of rice in Thailand?
a. 400 baht b. 250 bhat c. 100 bhat d. None of the above is correct.