In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would
a. lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation.
b. result in a variety of product prices, but overall GDP would be unaffected.
c. be efficient if the wages were fixed at a high enough level.
d. reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers.
A
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The FOMC states its overall objectives for interest rates in
A) the Governors' Order. B) the Policy Directive. C) the Federal Reserve Bulletin. D) the Chairman's Order.
At various points along the production possibilities frontier,
a. the greatest achievable output levels are illustrated b. resources are not fully employed c. more of one good can be obtained without giving up more of the other d. more efficient output levels are possible e. society is equally well off