Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100 . If the wage is $10 and the rental rate on capital is $20, the fixed cost is

Economists have found evidence that differences in wages can be explained by

a. experience b. job characteristics c. physical attractiveness d. All of the above are correct.

Wage contracts, efficiency wages, and the minimum wage are explanations for why:

A. Competition results in price wars B. Wages tend to be inflexible downward C. The aggregate demand curve slopes downward D. There is little support for the existence of a real-balances effect