Joanne states: "The best way to increase the wages of workers is to increase worker productivity." Is Joanne correct? Why or why not?
Joanne is correct. High productivity is the source of high wages. When the output per hour of workers is high, the real wages of the workers will also be high.
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Which statement about leveraging is true?
a. It is safer for banks to have a high level of leverage than a low level of leverage. b. A higher amount of leveraging means a higher potential for profit. c. Financial institutions avoid being highly leveraged due to the potential for loss. d. Banks can only use their own money as leverage.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
A) a smaller trade sector B) a higher rate of investment C) higher tax rates D) greater use of taxation to transfer income from the rich to the poor