Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the level of employment?
A) Increases, but some unemployment remains
B) Increases, and the labor market reaches full employment
C) Decreases
D) Does not change
A
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What is the definition of the unemployment rate? How are part-time workers and discouraged workers treated when calculating the unemployment rate?
What will be an ideal response?
A price floor policy establishes a minimum price for a market, and the policy is said to be binding if the market equilibrium price is less than the floor price. What impact does a binding price floor have on the market outcome?
A) Excess supply B) Excess demand C) Shortage D) No impact, and the market price and quantity equal their equilibrium values
The sum of the explicit and implicit costs incurred in the production process is called:
a. fixed cost. b. sunk cost. c. marginal cost. d. total cost.
What is the percentage of income received by the upper quintiles on line K?
