Other things the same, we'd expect that a job with less pleasant working conditions pays

a. more; this is known as an efficiency wage.
b. more; this is known as a compensating differential.
c. less; this is known as an efficiency wage.
d. less; this is known as a compensating differential.

b

Economics

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Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Then

A) prices rise and inflation occurs. B) there is a surplus of loanable funds. C) there is a shortage of loanable funds. D) there is neither a shortage nor surplus of loanable funds.

Economics

Explain the principle of neutrality with respect to taxes

What will be an ideal response?

Economics