Efficiency wages
a. may increase productivity.
b. will increase unemployment.
c. may improve worker health.
d. All of the above are correct.
d
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The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is typically referred to as
A) demand-side economics. B) Ricardian equivalence. C) supply-side economics. D) Keynesian economics.
In the short run, product differentiation enables firms in monopolistically competitive markets to:
A. produce a good for which there are exact substitutes. B. produce a good which is standardized. C. price the good at marginal cost. D. earn a positive economic profit.
The Keynesian AS curve is
a. flat because of unemployed resources. b. vertical because of full employment. c. upward sloping. d. downward sloping.
If the price level rises, what will happen to aggregate supply?
a. It will shift outward. b. It will shift inward. c. Nothing. d. It will get steeper. e. It will get flatter.