In the efficiency wage model, if the real wage is higher than the market-clearing wage so that there is an excess supply of labor
A) firms will hire new workers at lower wages.
B) firms will replace high-paid workers with low-paid, formerly unemployed workers.
C) employers will not hire workers who are willing to work for a lower wage.
D) firms will demand a higher level of effort from existing employees.
C
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Since 1900, real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time
A) increased; overstates B) decreased; understates C) increased; understates D) decreased; overstates
In the United States, where there is a permanent increase in the money supply, exchange rate overshooting is caused in part by:
a. higher domestic interest rates. b. an appreciation of the dollar. c. lower foreign interest rates. d. a depreciation of the dollar.
Each of the following is an example of a financial intermediary EXCEPT a:
A. commercial bank. B. credit union. C. savings and loan association. D. bond market.
If D equals the maximum amount of new demand-deposit money that can be created by the banking system on the basis of any given amount of excess reserves, E equals the amount of excess reserves, and m is the monetary multiplier, then:
A. D = m/E. B. m = E/D. C. D = E × m. D. D = E - 1/m.