Most of the state and local government employees are in what area?

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

In the figure above, what is the MPC?

A) 0.75 B) 1.00 C) 0.50 D) 0.80 E) 0.90