The theory of efficiency wages asserts that
a. employers set wages based on each employee's productivity.
b. employers strive to hold wages below equilibrium levels.
c. employers may find it profitable to pay above-equilibrium wages.
d. efficient workers actually earn lower wages than those earned by inefficient workers.
c
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A country seeking to maintain internal balance would be concerned
A) only with attaining low levels of unemployment. B) primarily with ensuring that saving is weighted more towards domestic investment than the current account. C) with large fluctuations in output or prices. D) with maintaining an adequate stock of gold reserves. E) with stabilizing employment levels globally.
The percentage of total national income spent on health care in the United States has
A) declined rapidly since 1965. B) remained below the level of inflation. C) risen steadily since 1965. D) remained constant over the last few years.