The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that
A) workers' effort may depend on the unemployment rate and the real wage.
B) during a recession, labor supply will decrease, reducing the efficiency wage.
C) during a recession, productivity will fall, causing a reduction in the efficiency wage.
D) during a boom, labor demand will increase, causing the efficiency wage to rise.
A
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________ save a ________ of their income. This ________ capital in their economy and raises economic growth
A) High-income countries; large proportion; increases B) Developing countries; large proportion; decreases C) High-income countries; small proportion; increases D) Developing countries; small proportion; increases
In considering the criteria for an ideal voting system, the idea of an irrelevant alternative refers to:
A. different voting methods that could alternatively be used, and could change the outcome. B. different voting methods that could alternatively be used, but would not change the outcome. C. when an option is added to a vote and is unrelated to the issue being voted on. D. when an option is added to a vote and has no realistic chance of winning.
Which of the following statements is an example of confusing association and causation?
A. Senator Jones believes that more tax revenue should be distributed to the poor. B. A map includes roads, but not every restaurant, telephone pole, and C. Interest rates rise when it rains, all other factors constant. D. When the price of Coca-Cola increases, consumers buy more Pepsi, all other factors constant.
The government budget constraint implies that
A) government borrowings = government spending+ transfers - taxes and user charges. B) government borrowings = taxes and user charges + government spending - transfers C) government spending = transfers - taxes and user charges - government borrowing. D) government spending = government borrowing - transfers - taxes and user charges