The Presence of Efficiency, Minimum and Union Wages

question 150

Multiple Choice

The presence of efficiency, minimum and union wages

• A)can explain job rationing because they lower the real wage rate below equilibrium.
• B)cannot explain job rationing because they are a natural part of the economy.
• C)can explain job rationing because they raise the real wage rate above equilibrium.
• D)can explain job rationing because they lower the natural unemployment rate.
• E)does not effect job rationing because they affect only the amount of job search.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs of a product, indicating the contribution of sales to covering fixed costs and generating profit.

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales in that market.

Sales Revenue

The total amount of money generated by the sale of goods or services related to the company's primary operations.

Competitive Set

A group of firms, products, or brands that a company considers its competitors in the market when making strategic decisions.