Figure 17.6.1 -The "No Shirking Constraint" (NSC) Curve Never Crosses the Supply

question 68

Multiple Choice

Figure 17.6.1
-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.

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Definitions:

Patents

Legal documents granting exclusive rights to inventors for their creations, preventing others from making, using, or selling the invention for a certain period of time.

Marginal Revenue

The supplementary income produced through the sale of one extra product or service unit.

Total Revenue

The overall earnings from sales of goods or services prior to any expense deductions.

Demand Curve

A visual chart that illustrates the connection between a product's price and the amount consumers are willing to buy.