Firms are most likely to set an efficiency wage above the competitive wage if
A. the firm is not concerned with maximizing profits.
B. workers refuse to work at the competitive wage.
C. the firm does not know what the competitive wage is.
D. most of its workers are not educated.
E. firms find it expensive to monitor worker output.
Answer: E
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Every country in the world has an independent central bank
Indicate whether the statement is true or false
Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1,000 and total assets of $10,000, the amount of desired reserves is
A) $100. B) $900. C) $1,000. D) $9,000. E) $1,100.
International capital markets experience a kind of risk not faced in domestic capital markets, namely
A) "economic meltdown" risk. B) Flood and hurricane crisis risk. C) the risk of unexpected downgrading of assets by Standard and Poor. D) the risk of exchange rate fluctuations. E) the risk of political upheaval.
A monopsonist's wage cost in hiring an additional worker is the:
A. worker's wage rate. B. worker's wage rate plus the wage increases paid to all workers already employed. C. worker's wage rate adjusted for the lower price that must be charged for the extra output. D. marginal wage cost less the wage rate.