What are efficiency wages and why are they important in internal labor markets?
What will be an ideal response?
Companies want employees to work hard but often find it hard to measure employees' efforts. But companies can pay workers more than the market wage rate to elicit higher effort and thereby increase output. Efficiency wages also provide incentives to the workers to stay within the company and reduce workers' incentive to shirk.
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A surplus in our balance of payments causes the dollar to __________, which causes the surplus to __________
A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease
The M1 money supply consists of:
a. only coins and currency held by the nonbank public b. certificates of deposit only. c. coins and currency held by the nonbank public, checkable deposits, and traveler's checks. d. money market mutual fund accounts, savings accounts, and other miscellaneous near-monies. e. only paper currency.
When demand is price inelastic,
a. price and total revenue move in the same direction. b. price and total revenue move in the opposite direction. c. total revenue increases whether price goes up or down. d. total revenue decreases whether price goes up or down.
The consumption function shows the relationship between:
A. planned consumption expenditures and disposable income. B. permanent income and savings. C. business inventory and real GDP. D. aggregate demand and aggregate consumption.