Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?
a. Workers in the market are unskilled and not represented by a union, and their wage exceeds both the equilibrium wage and the minimum wage.
b. Workers in the market are highly skilled and not represented by a union, and their wage exceeds the minimum wage.
c. Workers in the market are highly skilled and represented by a union, and their wage exceeds the equilibrium wage.
d. Employers in the market are known for reducing the workers' wage whenever they get an opportunity to do so.
a
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The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient amount of college education, the cost paid by the taxpayers is
A) zero. B) $8,000 per student. C) $4,000 per student. D) $12,000 per student.
Explain why it is more likely that the opportunity cost of attending a 7:00 a.m. class is forgone sleep but that this is not reasonably likely to be the case for a class that meets at 12:00 noon
What will be an ideal response?
Which of the following is correct about the economic decisions consumers, firms, and the government have to make?
A) Each faces the problem of scarcity which necessitates trade-offs in making economic decisions. B) Governments may face the problem of shortages but not scarcity in making economic decisions. C) Firms and the government face scarcity, individuals only face shortages. D) Only individuals face scarcity; firms and the government do not.
If the actual inflation rate is less than the expected inflation rate, the actual real interest rate will be ________ than the expected real interest rate. When this happens, ________ will lose and ________ will gain
A) less; borrowers; lenders B) less; lenders; borrowers C) greater; borrowers; lenders D) greater; lenders; borrowers