Why might firms pay wages that are above the equilibrium wage in a market?
A) to increase the productivity of their workers
B) to reduce the unemployment rate
C) to encourage workers to form labor unions
D) to reduce profit
Answer: A
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If the economy is fully employed, then the inflationary costs of expansionary policy are likely to be: a. low, and the unemployment gains minimal. b. low, and the unemployment gains large
c. high, and the unemployment gains minimal. d. high, and the unemployment gains large.
Dumping is
a. the sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market. b. an inappropriate method for getting rid of byproducts from a production process. c. a method to increase competitiveness in a market. d. all of the above. e. both a and c above.
When an economy expands, the unemployment rate is slow to drop because the labor force expands too.
Answer the following statement true (T) or false (F)
In general, risk-loving individuals experience increasing marginal utility from income.
Answer the following statement true (T) or false (F)