Cheryl is a professor at a local university. She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children. What is the name for this above-equilibrium wage?
efficiency wage
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The income effect of a wage decrease examines the effect of the decrease in wage income on a worker's ability to purchase goods and services
Indicate whether the statement is true or false
Patricia's nominal annual income in 2009 was $60,000. If the rate of inflation is constant at 10 percent, in order to keep Patricia's real income constant, her nominal income in the year 2010 should be:
A. $60,000. B. $54,000. C. $66,000. D. $70,000.
Economic growth may be represented by:
A. A movement from one end of the production possibilities curve to the other B. An upward-sloping production possibilities curve C. A movement from a point inside to a point on the production possibilities curve D. A rightward shift of the production possibilities curve
(a) Find the total profit or total loss of the firm shown in the graph. (b) Is the firm in short run or long run? (c) How much is the firm's most efficient output? (d) What is the lowest price the firm would accept in the long run?
