An efficiency wage ________ because ________
A) increases job rationing; the real wage rate is lowered below the equilibrium
B) decreases job rationing; the real wage rate is lowered below the equilibrium
C) is used often; it is inexpensive and effective
D) increases job rationing; the real wage rate is raised above the equilibrium
E) decreases job rationing; the real wage rate is raised above the equilibrium
D
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If the Fed is using policy to combat inflation, what is likely to happen in the foreign exchange market and to the foreign exchange value of the dollar?
A) The demand for the dollar will increase and the foreign exchange value of the dollar will rise. B) The demand for the dollar will decrease and the foreign exchange value of the dollar will fall. C) The demand for the dollar will decrease and the foreign exchange value of the dollar will rise. D) The demand for the dollar will increase and the foreign exchange value of the dollar will fall.
Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides
a. How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? b. How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? c. If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?