A firm may benefit by paying workers more than the market clearing wage because the higher wages may lead to all of the following except
A. reduced taxes.
B. lower worker turnover.
C. improved worker morale.
D. reduced shirking of work.
Answer: A
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Briefly state several reasons for the decline in sales for McDonald's in 2001-2002
What will be an ideal response?
All of the following are examples of "external taxes" except:
a. the Stamp Act b. the Sugar Act c. the Townshend Acts d. the Molasses Act
Which of the following is true about advertising?
A. Firms spend money on advertising in an attempt to make the demand curve more elastic. B. Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms. C. Advertising has no impact on entry costs or market structure. D. Firms consider advertising to be successful if it succeeds in lowering the long-run average cost.
Use a saving-investment diagram to explain what happens to saving, investment, and the real interest rate in each of the following scenarios in a closed economy.(a)In an agricultural economy, great weather this year promises a bumper crop next year, leading citizens to expect higher income next year.(b)Government regulations going into effect next year will reduce the marginal product of capital.(c)The government increases lump-sum taxes on citizens.
What will be an ideal response?