Graphically, the trend line for the nominal mortgage rate coincides with the trend line for the real mortgage rate if the rate of inflation is zero

A firm uses an efficiency wage scheme to deter workers from shirking. A risk-neutral worker will NOT shirk if

A) the expected loss from being fired is larger than or equal to the gain from shirking. B) the expected loss from being fired is smaller than the gain from shirking. C) the gain from shirking is positive. D) the expected loss from being fired is zero.

The labor supply curve is typically upward sloping because as the wage rate rises,

a. it will exceed the reservation wages of more individuals b. the opportunity cost of leisure falls c. the demand for the good produced by labor increases d. the marginal revenue product of labor falls e. the marginal revenue product of labor rises