Efficiency wages cause unemployment because
A) firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied.
B) firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.
C) firms pay wages that are below the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.
D) firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied.
B
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When a commercial bank borrows from a Federal Reserve Bank, ________.
A. it indicates that the commercial bank is unsound financially B. the supply of money automatically increases C. the commercial bank's reserves are reduced D. the commercial bank's lending ability is increased
Suppose Sam plans to buy only popcorn and soda. He has $40 to spend per week. A change in which of the following variables will change Sam's consumption possibilities? I. price of popcorn II. income III. preferences IV. utility
A) II only B) I and II C) I, II and III D) III and IV
Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies
Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and found A) that consumers use products with inferior technologies when their prices are lower than products with superior technologies. B) that in all of these cases network externalities resulted in market failure. C) there is no convincing evidence that the alternative technologies were superior. D) consumers sometimes do become locked into the use of products with inferior technologies.
Reserve requirements is the rate the Fed charges when it lends money to banks
Indicate whether the statement is true or false