Rafael is the newly-appointed plant manager for a company that manufactures head phones. Rafael's senior supervisors told him that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should he do?
a. pay all workers more than the equilibrium wage rate
b. pay all workers below the equilibrium wage rate to make up for the loss from shirking
c. make sure that workers are getting paid exactly the equilibrium wage rate
d. fire the workers with the most seniority
a
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the firms' surplus equals ________
A) $800 B) $900 C) $1,800 D) $400 E) $200
The National Banking Acts of 1863 and 1864 attempted to make the national banking system seem stronger than the state banking system by all of the following EXCEPT:
(a) Imposing legal reserve requirements on national banks (b) Providing depository insurance (c) Linking the capital requirements of national banks to the size of the cities in which they were located (d) Making national bank notes legal tender
Between 1960 and 1997, the federal budget was never in surplus
a. True b. False Indicate whether the statement is true or false
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's explicit costs?
A. $72,000 B. $12,000 C. $64,000 D. $8,000