Efficiency wage theory suggests that
A) workers will be paid less than their reservation wage.
B) productivity might drop if the wage rate is too low.
C) the government can only set tax rates so high before people will prefer not to work.
D) unskilled workers will have a lower turnover rate than skilled workers.
E) firms will be more resistant to wage increases as the labor market tightens.
B
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If the expected future exchange rate decreases, then the supply of dollars ________ and the demand for dollars ________
A) increases; increases B) decreases; increases C) increases; decreases D) decreases; decreases E) does not change; does not change
In order to regulate a monopoly's price the government
A) needs to hire former executives from the monopoly. B) should rely on industry experts for information. C) needs accurate information on the monopoly's demand and cost curves. D) needs to know the monopoly's supply curve.