An efficiency wage

A) is higher than the market wage and tends to increase productivity.
B) is lower than the market wage and tends to increase productivity.
C) is higher than the market wage and tends to decrease productivity.
D) is lower than the market wage and tends to decrease productivity.


Answer: A

Economics

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A) rise; an increase B) rise; a decrease C) fall; an increase D) fall; a decrease E) rise; no change

Economics

Each of the following provides incentives to reduce a negative externality except:

a. a merger with affected firms. b. subsidizing consumption of the good being produced. c. bargaining among firms. d. taxation of the externality.

Economics

Given the payoffs in the matrix shown, Firm B:

This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.

A. should always choose to collude, regardless of Firm A's actions.
B. should always choose to compete, regardless of Firm A's actions.
C. should compete if Firm A competes and collude if Firm A colludes.
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Economics

Supply-siders feel that high levels of government spending:

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Economics