It is said that a wage increase can have two opposing effects. Which of the following captures these two effects?
a. A backward-bending labor-supply curve
b. A perfectly elastic labor-supply curve
c. A perfectly inelastic labor-supply curve
d. A perfectly elastic labor-demand curve
e. A backward-bending labor-demand curve
a
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The larger the leverage ratio of a bank,
A) the greater the proportion of its deposits that are fully insured. B) the smaller the proportion of its deposits that are fully insured. C) the thicker its cushion against failure. D) the thinner its cushion against failure.
The relative wage coordination argument points out that:
a. workers who are confronted with the possibility of a wage cut will worry about finding themselves worse off—both in absolute terms and relative to other workers who have seen their wages preserved. b. reducing wages for all workers during poor business conditions will cause the best workers with the best employment alternatives at other firms to leave, while the least attractive workers, with fewer employment alternatives, are more likely to stay. c. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate. d. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong.