According to the efficiency wage model, during a recession, firms will not reduce real wages because
A) unions would go on strike, reducing profitability.
B) this would reduce worker effort and productivity.
C) the equilibrium real wage has increased.
D) legally, they can't.
B
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If you pay $4,888 for a $5,000 face value one-year Treasury bill, what is the rate of interest you will receive?
A) 1.02% B) 2.29% C) 4.46% D) 9.78%
When the U. S. federal government runs a budget deficit, it borrows money by selling:
a. Treasury bills, notes, and bonds. b. publicly owned land. c. its gold reserves. d. financial assets located in foreign banks.
The mix of consumer purchases that maximizes the utility attainable from available income is called the
A. Optimal consumption. B. Total utility combination. C. Maximum consumption. D. Marginal utility combination.
Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and favorable weather has increased the grape harvest of California vineyards. In the market for red wine, these two developments would
A) increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. B) increase demand and increase supply, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. C) increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. D) increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.