An efficiency wage
A) is lower than the market wage and tends to decrease productivity.
B) is higher than the market wage and tends to decrease productivity.
C) is lower than the market wage and tends to increase productivity.
D) is higher than the market wage and tends to increase productivity.
D
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Refer to Figure 27-4. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) an increase in the marginal income tax rate B) an open market purchase of Treasury bills C) an increase in interest rates D) an increase in transfer payments
If the capital-labor ratio equals 1.5 in the steady state, depreciation equals 20, and dilution equals 10, break-even investment equals
A) 15. B) 20. C) 30. D) 45.
Jim's Burgers produces 600 burgers per week. Each burger sells for $3 . Goody Candy orders 500 burgers for its upcoming office party from Jim's Burgers. Jim decided to accept the order for $1250 lump sum. What would be the marginal revenue per burger for this order?
a. $3 b. $2.50 c. $0.50 d. It cannot be determined with the information given
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. This suggests that
a. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will export coffee. b. Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will import coffee. c. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will export coffee. d. other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.