Efficiency wages create a labor
a. surplus and so increase unemployment.
b. surplus and so decrease unemployment.
c. shortage and so increase unemployment.
d. shortage and so decrease unemployment.
a
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Equilibrium in the Keynesian model is
a. quite stable, unless the government does something to throw it off balance. b. stable as long as planned injections are equal to planned leakages. c. not affected much by taxes or government spending. d. not a significant concept in Keynesian analysis.
Suppose Bianca buys a used a textbook from Sebastian for $55. If Bianca's surplus from this transaction was $10, we can infer that:
A. Bianca's reservation price was $45. B. Sebastian's reservation price was $45. C. Bianca's reservation price was $60, and Sebastian's reservation price was $50. D. Bianca's reservation price was $65.
Socialism is correctly described by which of the following statements?
A. Central planning is used exclusively to answer the basic economic questions. B. Markets are used exclusively to answer the basic economic questions. C. Tradition is used exclusively to answer the basic economic questions. D. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Figure 17.1 depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $12, how many hours of labor will the firm demand?
A. smaller than 30 hours B. between 30 hours and 40 hours C. between 40 hours and 50 hours D. greater than 50 hours