A college professor hires a student to babysit her children and pays the student an efficiency-wage. Which of the following is correct about the wage the student earns?
a. The wage is higher than the wage the student could earn working a similar job elsewhere.
b. The wage is the same as the wage the student could earn working a similar job elsewhere.
c. The wage is lower than the wage the student could earn working a similar job elsewhere.
d. The wage is likely to result in the student shirking responsibilities.
a
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Firms that contain some divisions that produce parts and components to be used by other divisions in order to generate finished goods are said to be:
A) horizontally integrated. B) vertically integrated. C) multinationals. D) corporations.
When a shortage of a good is present due to a price ceiling,
a. the amount supplied will be greater than the amount demanded. b. the quality of the good will generally improve. c. non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good. d. the demand for the product will increase and, thereby, eliminate the shortage.