An efficiency wage is defined as
A. any wage scheme that is accepted by the union.
B. a wage above the competitive wage that elicits greater effort on the part of workers.
C. any wage scheme that pays all workers the same wage.
D. a wage below the competitive wage that elicits greater effort on the part of the workers.
E. any wage scheme that pays different workers different wages.
Answer: B
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Which of the following would be most likely to encourage capital formation in a less-developed country?
a. The expectation of sustained high inflation. b. The expectation that property rights will be highly secure in the years ahead. c. The imposition of high tariffs and other restraints limiting imports. d. Higher personal and corporate tax rates.
In recent years, the Chinese government has _____________ bonds issued by the U.S. government which has _____________ interest rates in the United States beyond what they would have been otherwise
A) bought; lowered B) bought; raised C) sold; lowered D) sold; raised
Two players who are both playing tit-for-tat can quickly find their way toward:
A. a cycle of cooperation and noncooperation, similar to a business cycle. B. noncooperative outcomes for the remaining rounds. C. lasting cooperation. D. None of these statements is true.
As noted in the text, which of the following was used by Nintendo to control the video game market?
a. a natural monopoly b. economies of scale c. a government franchise d. exclusive licensing