Efficiency wages are ________
A) market clearing wages
B) wages that are above the market-clearing level
C) equal to the real wage rate minus the nominal wage rate
D) equal to the nominal wage rate divided by some measure of the general price level
B
You might also like to view...
What is the difference between the poverty line and the poverty rate?
What will be an ideal response?
The variable used by economists as the best broad indicator of a nation's standard of living is
A) real GDP per person. B) real GDP. C) the capital-labor ratio. D) the capital-output ratio. E) multifactor productivity.
One purpose of the currency board adopted in Argentina in 1991 was to ________
A) encourage capital mobility B) make monetary policy more effective C) stabilize the exchange rate between the Argentine peso and the currencies of Argentina's major trading partners D) put an end to speculative attacks on the Argentine peso
Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combinations of goods could Country A consume?
A. (15 airplanes, 20 trucks)
B. (10 airplanes, 20 trucks)
C. (10 airplanes, 30 trucks)
D. (5 airplanes, 20 trucks)