In the above figure, a(n) ________ would be set ________
A) effective minimum wage; above $6.00.
B) union wage; above $9.00 but would not affect the natural rate of unemployment.
C) efficiency wage; below $9.00
D) efficiency wage; above $6.00.
E) efficiency wage; above $9.00 and would increase the natural rate of unemployment
E
You might also like to view...
Suppose that deposit insurance were reduced to a maximum of $50,000 per account (instead of $250,000). This would address the specific market imperfection of
a. externalities. b. imperfect information. c. rent seeking. d. moral hazard.
Economic thinking indicates that efficient adaptation strategies to reduce harms from future global warming will
a. focus on reducing overall carbon emissions. b. emphasize changes like those imposed on prosperous nations by the Kyoto Treaty. c. focus on reducing the effects of serious problems that we know to exist. d. ensure that every precaution will be taken to reduce any possible risks for the future.