A firm uses an efficiency wage scheme to deter workers from shirking, which is detected 10% of the times. Suppose a risk-neutral worker. The industry ongoing wage is $3,000. The efficiency wage paid by this firm is $8,000. What is this worker's reservation wage?
A) $400
B) $500
C) $1,000
D) $1,500
B
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Which of the following benefits from a quota or VER?
A) domestic producers B) the government C) consumers D) all of the above
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Which of the following is true? The opportunity cost of:
A. 1 iPod in Country A is 2 tablets. B. 1 tablet in Country A is 2 iPods. C. tablets is lower in Country A than Country B. D. 1 iPod in Country B is 2 tablets.
The equilibrium price of automobiles is a primarily macroeconomic issue
a. True b. False
On a graph with consumption on the vertical axis and disposable income on the horizontal axis, the slope of the line is
A. greater than 1. B. equal to 1. C. less than 1. D. undefined.