The efficiency wage is
A) lower than the market-clearing wage, to penalize shirking.
B) higher than the market-clearing wage, to penalize shirking.
C) lower than the market-clearing wage, to allow managers the resources to monitor shirking.
D) higher than the market-clearing wage, to reward workers for informing on others who shirk.
E) lower than the market-clearing wage, because of shirking done by managers.
B
You might also like to view...
The firms in a perfectly competitive are making an economic profit when new firms enter. The entry shifts the short-run market supply curve ________, the market price ________, and each firm's economic profit ________
A) leftward; rises; decreases B) rightward; rises; increases C) rightward; falls; decreases D) leftward; falls; decreases
A seller who wishes to increase the revenues should always increase the price of the product.
Answer the following statement true (T) or false (F)
Suppose two firms in a duopoly implicitly collude and charge a high price. How might each firm benefit from advertising that it will match the lowest price offered by its competitor?
A) The advertisement is meant to suggest to consumers that the offered price is actually the lowest price available. B) The offer to match prices is a way of signaling to antitrust authorities that the firms are not engaged in illegal collusion. C) The advertisement ensures that the other firm does not cheat. If a firm cheats on the agreement and charges the lower price, the rival firm will retaliate by doing the same. D) The offer to match prices is a way of deterring entry by other large firms, thereby keeping the market share of the existing firms intact.
What were the two main sources of population increases during the antebellum period?
(a) a significant increase in the number of indentured servants and slaves (b) immigration and a natural increase in population (c) government policies providing incentive to procreate and advanced pre-natal care (d) longer life expectancies and high infant mortality rates