Which of the following is an example of an efficiency wage?
a. a higher wage paid to a more experienced worker
b. a below-equilibrium wage paid by a small business exempt from minimum-wage laws
c. an above-equilibrium wage paid by a firm to reduce turnover costs
d. a wage tied to participation in a government-sponsored job training program
c
Economics
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Which of the following is the least likely take place if the Fed responds to a negative demand shock by reducing the real interest rate?
A) IS shifts to the right B) output gap returns to zero C) inflation returns to its previous rate D) MP shifts down
Economics
If a monopoly's demand curve shifts to the right, the
A) monopoly will charge a higher price. B) monopoly will charge a lower price. C) monopoly will sell more. D) monopoly's decision cannot be determined.
Economics