The "no shirking constraint" (NSC) curve never crosses the supply of labor curve, so
A) the market never reaches equilibrium.
B) there is always full employment in equilibrium.
C) there is always some unemployment in equilibrium.
D) the efficiency wage is always lower than the market-clearing wage.
E) the gap between the NSC curve and the supply of labor curve equals the difference between the efficiency wage and the market-clearing wage.
C
Economics
You might also like to view...
An economic system that permits the conduct of business with minimal government intervention
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism
Economics
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 belt in Estonia?
A) 1/3 of a sword B) 3/5 of a sword C) 1.67 swords D) 5 swords
Economics