Which of the following is an example of an efficiency wage?
a. a higher wage paid to a more experienced worker
b. a below-equilibrium wage paid by a small business exempt from minimum-wage laws
c. an above-equilibrium wage paid by a firm to reduce turnover costs
d. a wage tied to participation in a government-sponsored job training program
c
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According to research by Stock and Watson, the recent decline in volatility in many macroeconomic variables was a
A) sudden drop that occurred around 1984. B) gradual decline throughout the 1980s. C) sudden drop that occurred around 1990. D) gradual decline throughout the 1990s.
When net exports are negative,
a. exports are greater than investment. b. depreciation is greater than net investment. c. imports are greater than investment. d. exports are greater than imports. e. imports are greater than exports.
Durbin's alternative test is valid even if the explanatory variables are strictly exogenous.
Answer the following statement true (T) or false (F)
Opportunity cost reflected on a production possibilities curve is
A) the cost of reducing the output of one good in order to increase the output of another. B) the rate at which people are willing to exchange goods as determined by demand and supply. C) the dollar cost of the good given up to get another good. D) independent of the slope of the curve.