Initially a firm pays a wage and gets an output per worker which are given index numbers of 1.00. Five possible 5 percent increases in the wage and the accompanying output per worker are as follows:
1.05 and 1.09, 1.10 and 1.17, 1.15 and 1.24, 1.21 and 1.28, 1.27 and 1.31. What is the efficiency wage?
A) 1.05
B) 1.10
C) 1.15
D) 1.21
E) 1.27
C
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Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1) The amount of investment in an economy is ultimately limited by the amount of savings in that economy. 2) Increasing investment in the present means forgoing future consumption. 3) A nation that wants to invest in more newly created capital in the present must be willing to forgo present consumption. 4) Banks and other financial institutions provide the link between savers and economic investors in the macroeconomy.