In the efficiency wage model, a decrease in productivity would
A. decrease output but have no effect on the real wage.
B. have no effect on either output or the real wage.
C. increase the real wage but have no effect on output.
D. decrease output but increase the real wage.
Answer: A
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If total revenue exceeds fixed cost, a firm
A) is making short-run profits. B) should produce in the short run. C) has covered its variable cost. D) may or may not produce in the short run, depending on whether total revenue covers variable cost.
Exhibit 36-2 Stock High Low Close Net chg. Dasher 17.25 16.75 17.00 (A) Dancer 34.85 34.25 (B) +0.25 Prancer 56.50 55.90 56.00 (C) Vixen 65.90 (D) 64.75 -0.75 Refer to Exhibit 36-2. If the closing price of Dancer's stock on the previous day was $34.25, what value goes in blank (B)?
A. 34.85 B. 34.00 C. 34.75 D. 34.50 E. There is not enough information given to answer this question.
If the price of the capital intensive product rises more than does the price of the land intensive product, then
A) the relative price of the capital intensive product will fall to some point between the pretrade relative prices. B) demand will shift away from the capital-intensive product, and its production will decrease. C) demand will shift away from the capital-intensive product, and its production will decrease relative to that of the land intensive product. D) the production of the capital-intensive product will decrease, but by less than production of the land-intensive product. E) the country that exports the capital-intensive good will lose its comparative advantage.
Between 2006 and 2008 the poverty rate
A. rose by about one percent. B. fell by about one percent. C. rose by around three percent. D. fell by about three percent.