What is downward wage rigidity?
What will be an ideal response?
Downward wage rigidity refers to the phenomena where workers resist a cut in their wages. When downward wage rigidity exists, last year's wage acts as a wage floor for current wages.
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Which of the following is evidence of a surplus of bananas?
A) The price of bananas is lowered in order to increase sales. B) Firms raise the price of bananas. C) The equilibrium price of bananas rises due to an increase in demand. D) The quantity of bananas demanded is greater than the quantity supplied.
The economic way of thinking will help you
A) make decisions in financing your home. B) decide whether the U.S. government should encourage or discourage immigration. C) make better decisions concerning your education. D) all of the above