An efficiency wage premium serves the same function as a bond because, just as with a bond, the premium represents
A) the amount the employee loses if caught shirking.
B) the expected value of the amount the employee loses if he shirks.
C) the cost of monitoring the employee.
D) the gain to the employee if he shirks.
A
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Rising income inequality is driven by: a. an increase in employment in the manufacturing sector of an economy. b. a progressive tax structure
c. a rising demand for unskilled, cheap labor. d. a technological advancement. e. a fall in capital's share of national income.
Which of the following is always true in competitive price-taker markets?
a. There are more sellers than buyers. b. Barriers to entry into the market are low. c. The products of firms in the industry are differentiated. d. The firms never earn economic profit.
Other Significant Entities Contributing to Federal Reserve Functions
What will be an ideal response?
What is the opportunity cost of moving from point D to point C?
Hypothetical Production Schedule for Two-Product Economy
