A survey made by Starc Motors reveals that the attrition rate for specialized workers is very high. In order to reduce attrition and increase productivity, the CEO of Starc Motors decides to pay the workers more than what market conditions dictate. The policy adopted by this company is based on the _____
a. efficiency wage theory
b. model of option pricing
c. insider-outsider model
d. relative wage coordination argument
a
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A consumer might consider in-line skates and elbow-pads to be
A) products with upward sloping demand curves. B) unrelated goods. C) complements. D) substitutes.
Refer to the above table. Given the demand and cost schedules, what is the profit-maximizing price for this monopolist?
A) $9 B) $12 C) $11 D) $10
Assume the price of Coca-Cola increases. As a result, your real income decreases and you decrease the quantity of Coca-Cola purchased each month. This is an example of the:
A. income effect. B. consumer price effect. C. revenue effect. D. substitution effect.
Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile. B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ. D) unequal because incomes differ by age.