The market wage could be higher than the equilibrium wage if a worker
a. belongs to a labor union.
b. is covered by a minimum-wage law.
c. is paid an efficiency wage.
d. All of the above are correct.
d
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_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
A) Negative externalities B) Moral hazard C) Positive externalities D) Bargaining
Suppose the price of soda is $2 each and the price of a pizza slice is $4 each. David maximizes his utility by buying only sodas and pizza. He buys 5 sodas and 10 slices of pizza. If the price of a soda increases to $3 each, David will
A) decrease the number of sodas bought and the demand curve for sodas will shift leftward. B) decrease the number of sodas bought and move along the demand curve for soda. C) buy more pizza and move along the demand curve for pizza. D) buy less pizza and the demand curve for pizza will shift leftward.
What are the types of institution banks used to conduct foreign business?
A) corporations B) central banks C) commercial banks D) agency offices, subsidiary banks, and foreign branches E) state-owned enterprises
A recessionary gap can be closed with
A) using a contractionary monetary policy. B) an increase in taxes. C) a decrease in government purchases. D) using an expansionary fiscal policy.