According to the efficiency wage model, during a recession, firms will not reduce real wages because
A. unions would go on strike, reducing profitability.
B. the equilibrium real wage has increased.
C. legally, they can't.
D. this would reduce worker effort and productivity.
Answer: D
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If you purchase a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $6000 D) loss; $6000
What will shift the short run aggregate supply curve to the left?
a. an increase in the quantity of capital b. an increase in inflationary expectations c. an increase in interest rates d. a technological advance
What do taxes do?
(a) Impact the incentive to use resources efficiently (b) Transfer income from the person or entity paying taxes to other individuals or entities (c) Affect the relative prices of goods, services and resources (d) All of the above
Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. Who is making the bad decision?
a. Tom b. Jerry c. Hanna Barbera d. None of them