Employers may choose to pay efficiency wages that are higher than the equilibrium wage because
a. workers will be more willing to accept monitoring by their employers.
b. the threat of unemployment will help prevent workers from shirking.
c. the higher compensation will encourage workers to take more risks.
d. higher wages will attract only the most qualified workers and thus help solve the employer's adverse selection problem 2.
b. the threat of unemployment will help prevent workers from shirking.
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The Keynesian macroeconomic model states that
A) changes in technology generate business cycles. B) the economy is inherently unstable and government intervention is required to maintain continued economic growth. C) fluctuations in the quantity of money are responsible for most economic recessions. D) markets work efficiently to produce the best macroeconomic outcomes. E) the economy is fairly stable.
What are the sources of private investments in foreign nations?
What will be an ideal response?
Which of the following statements is true?
a. There is no single correct strategy for economic growth and development. b. In general, GDP per capita is highly correlated with alternative quality of life measures. c. The World Bank is affiliated with the United Nations and makes long-term low-interest loans to LDCs. d. All of these.
If over the next year the inflation rate in the euro area is higher than the inflation rate in Japan, then the euro should depreciate relative to the Japanese yen
a. True b. False Indicate whether the statement is true or false