An efficiency wage is:
A. a wage payment necessary to compensate workers for risk of injury on the job.
B. a "wage" that contains a profit-sharing component as well as traditional hourly pay.
C. an above-market wage that minimizes a firm's labor cost per unit of output.
D. a wage that automatically rises with the national index of labor productivity.
C. an above-market wage that minimizes a firm's labor cost per unit of output.
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
Traders working for banks are subject to the
A) principal-agent problem. B) free-rider problem. C) double-jeopardy problem. D) exchange-risk problem.
Is Water a Free Good?
- Is water a free good or a scarce good? Why?
- Why would a higher price for water reduce the likelihood of a future water shortage?
A major contributor to a country's real rate of economic growth is its real Gross Domestic Product (GDP) growth relative to its
A. money growth. B. population size. C. inflation. D. none of these.