In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would
a. lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation.
b. result in a variety of product prices, but overall GDP would be unaffected.
c. be efficient if the wages were fixed at a high enough level.
d. reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers.
A
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To answer the next question, use the following table, which shows the demand schedule faced by Ninaskets, a pure monopoly selling baskets.PriceNumber of Baskets Sold$203185167141012151030What is the change in total revenue if the pure monopoly lowers the price from $20 to $18?
A. $10 B. $20 C. $30 D. $40
The investment curve is ________ of (on) the level of national income and ___________ as the interest rate falls
a. independent; quantity demanded of investment decreases b. dependent; quantity demanded of investment increases c. independent; quantity demanded of investment increases d. dependent; quantity demanded of investment remains unchanged e. dependent; investment curve shifts from horizontal to upward sloping
The CPI is always 1 in the base year
a. True b. False Indicate whether the statement is true or false
If expectations are formed rationally, wages and prices are completely flexible in both the short run and the long run, and policy is correctly anticipated, increases in aggregate demand will stimulate the economy to higher levels of Real GDP in
A) the short run or the long run. B) neither the short run nor the long run. C) the short run, but not in the long run. D) the long run, but not in the short run.