Efficiency wages create a
a. shortage of labor and so reduce unemployment.
b. shortage of labor and so raise unemployment.
c. surplus of labor and so reduce unemployment.
d. surplus of labor and so raise unemployment.
d
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During a business cycle recession, total production ________ and total employment ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The behavior of the Solow residual suggests that when current total factor productivity increases
A) it becomes more difficult to predict future total factor productivity. B) future total factor productivity is also likely to increase. C) such increases are temporary, so we can draw no conclusions about the likely behavior of future total factor productivity. D) future total factor productivity is likely to decrease.
More of a tax is borne by firms:
A. the more elastic is demand and the less elastic is supply. B. the less elastic is demand and the less elastic is supply. C. the more elastic is demand and the more elastic is supply. D. the less elastic is demand and the more elastic is supply.
Big Bear Enterprises, which competes in a perfectly competitive market, is producing so that the point chosen along the production possibility frontier is socially preferred. Big Bear Enterprises has achieved which of the following?
a. Allocative efficiency b. Productive efficiency c. Economies of scale d. Long-run equilibrium