Efficiency wages tend to:
A. reduce costs in the short run but increase them in the long run.
B. raise costs in both the long run and the short run.
C. reduce costs in both the long run and the short run.
D. increase costs in the short run but reduce them in the long run.
Answer: D
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If average labor productivity increases, then the same number of employed workers will always produce:
A. more output per person. B. less output per person. C. less total output. D. more total output.
The first run on a British bank since 1866 occurred in August 2007 at which bank?
A) Liberty Mutual B) Liberty Rock C) Northern Rock D) Bank of England E) First Savings and Loan
If a bond sells for $2,000 and pays $200 per year in interest, the interest rate on the bond is
A) 20 percent. B) 10 percent. C) 5 percent. D) 100 percent.
Because of a patent, Alcoa is the only manufacturer of soda cans with a stay-put tab. Alcoa can earn a profit on the sale of soda cans with stay-put tabs
A. in the long run because entry into the industry by new firms is blocked until the patent expires. B. only in the long run because government regulations prevent monopolists from earning profits in the short run. C. in the short run but not in the long run because new firms will enter the industry in the long run. D. in the long run but not the short run because the monopolist will face competition in the short run.