In the efficiency wage model, an increase in productivity will cause
A) no change in the real wage.
B) an increase in the real wage.
C) a decrease in the real wage.
D) an increase in both the real wage and the level of employment.
A
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The negative externality in a pesticide or other chemical market
a. is associated mainly with production of the chemical b. is primarily a consumption externality c. should be modeled as a marginal external cost (MEC) d. is appropriately captured by the MSC function
In the importing country, the most likely effects of tariffs and/or import quotas is to _______ prices and ________ consumption of the protected goods.
A) raise; reduce B) raise; raise C) raise; not affect D) reduce; reduce
If an increase in income leads to a decrease in the demand for ground beef, then ground beef is a(n):
A. inferior good. B. substitute good. C. normal good. D. complementary good.
In the above table, what is the average total cost to produce 5 units of output?
A. $40 B. $60 C. $80 D. $55