Efficiency wages are:
A. above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages.
B. wage payments necessary to compensate workers for unpleasant or risky work conditions.
C. usually less than market wages.
D. relevant to macroeconomics because they explain rightward shifts in aggregate demand.
A. above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages.
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If the FDIC eliminated its insurance program for deposits, then
A. banks would probably hold fewer reserves. B. individual depositors would have more incentive to ascertain the soundness and solvency of the bank. C. moral hazard would be increased. D. the banking system would probably fail.
Offering a product at a price below marginal cost is a more effective pricing strategy if
A. opportunity costs are higher. B. information costs are higher. C. information costs are lower. D. sunk costs are higher.
When a country's currency is devalued
A) output decreases. B) output increases and the money supply decreases. C) the money supply decreases. D) output decreases and the money supply increases. E) both the output and the money supply increases.
The benefit to some consumer of the last unit of a good consumed is
a. represented by the height of the supply curve at that quantity b. negative if the producer is suffering economic loss c. decreases at an increasing rate in a competitive product market d. is zero e. represented by the height of the demand curve at that quantity