Which of the following is the main argument for why efficiency wages can help encourage workers to provide full effort on a job?
A. Workers do not understand that high-wage workers do not need to work hard to maintain their job.
B. When the efficiency wage is less than the competitive wage, workers work harder in order to convince other firms to hire them away at the higher, competitive wage.
C. Workers do not want to risk becoming unemployed when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage.
D. Management hires fewer workers at the higher efficiency wage, and therefore all workers must work harder.
E. None of these provide an argument for why efficiency wages encourage workers to provide full effort on a job.
Answer: C
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Which entity within the U.S. government is responsible for computing and reporting the CPI?
a. the Department of Commerce b. the Department of Labor c. the General Accounting Office d. the Council of Economic Advisers
If the purchasing power of your debt is increasing over time, we know that the:
A. inflation rate is greater than the nominal interest rate. B. real interest rate is negative. C. nominal rate of interest is positive. D. real interest rate is positive.
A total fertility rate of 1.0 will cause the:
A. population to remain stable. B. population to double in one generation. C. population to collapse in one generation. D. next generation to be half the size of the current generation.
Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. At an income level of $20,000, the average tax rate is
A. 1.2%. B. 8.3%. C. 12%. D. 24%.