Which of the following is NOT a cause for real wage rigidity?

A. minimum-wage laws
B. unemployment insurance
C. union power
D. efficiency wages


Ans: B. unemployment insurance

Economics

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A firm can sell as many units of its output as it wants for $10 a piece. The current market wage rate for its workers is $20 per hour. It follows that the firm will hire workers up to the point where the last worker hired produces how much per hour?

a. one unit. b. two units. c. one-half a unit. d. 200 units.

Economics

Panel A shows a change in quantity demanded and Panel B shows a change in demand.

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Indicate whether the statement is true or false.

Economics

Stability of the U.S. economy between 1985 and 2007 referred to as

A) Great Moderation. B) the Great Depression. C) Automatic Stabilizer. D) Fiscal Discretion.

Economics

A monopoly might produce less than the socially optimal amount of pollution because

A) it likes to be a good citizen. B) it sets price above marginal cost. C) it earns economic profit. D) it internalizes the external costs.

Economics