If firms pay what are called "efficiency wages," they pay wages that
A) are lower than average to ensure maximum profit.
B) are mandated by the government.
C) will eventually lower the unemployment rate.
D) motivate workers to increase their productivity.
D
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Change in U.S. policy can lead to changes in inflationary expectations, interest rates, and exchange rates simultaneously as they all adjust to new equilibrium levels
Indicate whether the statement is true or false
Secondary effects are consequences of economic actions that develop slowly over time as people react to events
a. True b. False
Which of the following is not a main function of the entrepreneur?
A. to innovate B. to assume the risk of economic losses C. to make strategic business decisions D. to make routine pricing decisions
Increases in inflation redistribute resources from ________-spending to ________-spending households and hence, ________ short-run equilibrium output.
A. low; high; increase B. low; high; decrease C. high; low; increase D. high; low; decrease