Because efficiency wage theory deals with the consequences of a change in a firm's ________ wage, if all wages were indexed to nominal aggregate demand the theory would be ________
A) absolute, even more appropriate
B) absolute, rendered inappropriate
C) relative, even more appropriate
D) relative, rendered inappropriate
D
You might also like to view...
The number of people who have gray hair is very high among residents living in Florida. A student concludes that living in Florida causes hair to turn gray. What is the flaw in this student's reasoning?
A) The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents. B) The student has failed to take into account other causes of gray hair. C) The student is using an inadequate sample size. D) The student is drawing a false conclusion; he is confusing cause and effect.
Other things the same, a country could move from having a trade surplus to having a trade deficit if either
a. saving rose or domestic investment rose. b. saving rose or domestic investment fell. c. saving fell or domestic investment rose. d. saving fell or domestic investment fell.