Which of the following statements is true about efficiency wages?
a. Efficiency wages reduce monitoring cost of the employer.
b. Employees benefit more from efficiency wages than employers.
c. Productivity of the employee is usually unaffected by efficiency wages.
d. Loafing is more rewarding for employees who earn efficiency wages.
A
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A flat-rate income tax is also called ________
A) an excise tax B) a property tax C) a proportional income tax D) a constant rate tax
The owner of a perfectly competitive firm that is earning economic losses in the short run
A) should alter the rate of output in order to increase profitability. B) should cut his own salary in order to reach the break-even point. C) is actually losing more than he thinks because not all of the implicit costs have been considered. D) is earning less than he would if he worked for someone else.
Expectations that the price level will decrease in the future will _____
a. make the current consumption function flatter b. shift the current consumption function downward c. result in an upward movement along the current consumption function d. result in a downward movement along the current consumption function e. make the current consumption function steeper
Critics argue that a disadvantage of the Earned Income Tax Credit is that it does not effectively target the working poor because many recipients are the teenage children of middle-income families
a. True b. False Indicate whether the statement is true or false