Efficiency wages:
A) can decrease costs if workers' productivity varies directly with wage rates.
B) can be used to reduce wage rigidity.
C) can lead to wage rigidity.
D) can increase profits if productivity of workers is fixed.
C
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If a consumer in UK buys a camera from a manufacturer in the U.S., everything else remaining unchanged, ________
A) the UK's net factor payment from abroad will fall B) there will be a deficit in U.S.'s financial account C) the U.S.'s net exports will increase D) the U.S.'s net transfer payment will increase
Which of the following is a major macroeconomic goal?
a. Low prices b. Fair prices c. Pure competition d. Low unemployment e. High prices
Gross domestic product (measured in real dollars) is an important social tool because it provides
a. observers with a reasonably good index of social progress. b. policy makers with a measure of the nation's total wealth. c. policy makers with information about the economy's current rate of output and the direction of recent changes. d. economists with a reasonably good measure of income inequality.
The prospect of future deficits:
A. encourages government to conduct expansionary fiscal policy. B. would prompt government to vastly expand discretionary spending. C. requires a government to eliminate all entitlement spending. D. limits the ability of government to conduct fiscal policy in the near future.