Which of the following is not a reason why wages respond slowly to changes in output?
a. Many labor contracts specify wages for up to three years.
b. The process of wage setting in large corporations is slow moving.
c. Frequent wage changes can reduce worker morale and reduce productivity.
d. Firms benefit from having a reputation of paying stable wages.
e. The labor supply and demand curves move rapidly to clear labor markets.
E
Economics
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Free trade refers to trade between countries
A) that is licensed by both governments. B) that is without shipping costs. C) of products which are free to low-income consumers. D) that is without restrictions.
Economics
Which of the following is an example of an ad valorem tax?
A) 5% of price B) 5% of quantity sold C) $0.50 per unit sold D) Government regulation
Economics