The salary of an athlete like Peyton Manning is in part a reward for his unique ability-something economists call economic rent

In an open economy, a shift down and to the left of the IS curve could have been caused by

A) a decline in the foreign real interest rate. B) an increase in the demand for domestic goods relative to foreign goods. C) an increase in foreign output. D) a decline in domestic output.

The idea of efficiency wages is that:

A. the wages of each type of labor must be proportionate to their marginal products. B. the wages of each type of labor must be equal to their marginal products. C. firms might get greater work effort by paying above-equilibrium wage rates. D. workers are more diligent when paid below-equilibrium wages.