An efficiency wage ________ because ________
A) increases job rationing; the real wage rate is lowered below the equilibrium
B) decreases job rationing; the real wage rate is lowered below the equilibrium
C) is used often; it is inexpensive and effective
D) increases job rationing; the real wage rate is raised above the equilibrium
E) decreases job rationing; the real wage rate is raised above the equilibrium
D
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One year a country has negative net exports. The next year it still has negative net exports and imports have risen more than exports
a. its trade surplus fell. b. its trade surplus rose. c. its trade deficit fell. d. its trade deficit rose
Which of the following is true of mercantilism?
A. Mercantilists believed that a nation does not benefit directly from its exports. B. Mercantilists believed that free trade is always beneficial for the trading nations. C. Mercantilists believed that under free trade each of the trading countries benefit equally. D. Mercantilism believed that national well-being was based on national holdings of gold and silver.
Name the three types of unemployment.
What will be an ideal response?
Even if a market is not competitive, the firms in the market may behave competitively if
A. The market is regulated. B. There are economies of scale. C. Potential competition exists. D. A natural monopoly exists.