If firms pay what are called "efficiency wages," they pay wages that
A) motivate workers to increase their productivity.
B) are lower than average to ensure maximum profit.
C) will eventually lower the unemployment rate.
D) are mandated by the government.
Answer: A
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Following are the controversies over how poverty should be measured, except:
a. government transfers and other programs are not properly taken into account in the measures of poverty. b. the poverty measures do not distinguish among the needs of different individuals. c. the concept of poverty line does not draw any distinction between income and purchasing power. d. the concept of poverty line does not take into account the expenditure on food by each family. e. the income generated in the underground economy are not taken into account.
The business-stealing externality states that entry of a new firms imposes a cost on existing firms because they lose customers
a. True b. False Indicate whether the statement is true or false
Which of the following does not cause “hidden” or “disguised” unemployment?
A. Involuntary part time work B. Discouraged workers C. Shortened work hours D. Loss of overtime
Which of the following is an exogenous variable in our model of the goods market in Chapter 3?
A) consumption (C) B) saving (S) C) disposable income (YD) D) government spending (G) E) none of the above