In the efficiency wage model, an increase in productivity will cause
A. an increase in the real wage.
B. no change in the real wage.
C. a decrease in the real wage.
D. an increase in both the real wage and the level of employment.
Answer: B
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The term equilibrium refers to the point where:
A. quantity supplied equals quantity demanded. B. buyers and sellers "agree" on the quantity of a good they are willing to exchange at all prices. C. the supply curve and demand curve do not intersect. D. every buyer and seller achieves their best possible outcome.
The most important factor in determining a nation's standard of living in the long run is the productivity of its resources
a. True b. False Indicate whether the statement is true or false
In practice, under the EMS, a member country
A) could never change its interest rate. B) could change its interest rate only if other countries changed theirs as well. C) must apply to a special European Commission in order to change its interest rate. D) had complete freedom in choosing the interest rate it wanted. E) had complete freedom in choosing its interest rate only if it is a very small country.
An industry in which there are five firms each accounting for 20 percent of the market has an HHI of 2,000.
Answer the following statement true (T) or false (F)