An efficiency wage is:
A. a wage payment necessary to compensate workers for risk of injury on the job.
B. a "wage" that contains a profit-sharing component as well as traditional hourly pay.
C. an above-market wage that minimizes a firm's labor cost per unit of output.
D. a wage that automatically rises with the national index of labor productivity.
C. an above-market wage that minimizes a firm's labor cost per unit of output.
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In 2008, Computers, Inc produced personal computers worth $20 million. If $16 million worth were sold and $4 million worth remained unsold at year end and were added to inventories, how much did Computers, Inc contribute to GDP in 2008?
a. $0 b. $4 million c. $12 million d. $16 million e. $20 million
In the long run, price elasticities of demand are usually __________
a. less than they are in the short run because people can adjust b. the same as they are in the short run because tastes don't change c. greater than they are in the short run because prices rise over time d. less than they are in the short run because real prices fall over time e. greater than they are in the short run because consumers have time to adjust