Which of the following statements is correct? With respect to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage.
b. the rationale underlying those models implies that firms will set the real wage above the market clearing level.
c. they explain a real wage rigidity.
d. all of the above
D
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Refer to the figure above. Quota rents equal
A) $2000. B) $5000. C) $6000. D) $10000.
Accumulating capital
a. requires that society sacrifice consumption goods in the present. b. allows society to consume more in the present. c. decreases saving rates. d. involves no tradeoffs.
For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the
two countries? A) Switzerland has the comparative advantage in chocolate. B) Switzerland has the comparative advantage in watches. C) Germany has the comparative advantage in watches and chocolate. D) Germany has the comparative advantage in watches.
An efficient market is characterized by the fact that
A. there are no opportunity costs. B. wealth is distributed fairly. C. profit opportunities are eliminated almost instantaneously. D. output is steady or growing and there is low inflation.