Wage Contracts, Efficiency Wages, and the Minimum Wage Are Explanations

question 13

Multiple Choice

Wage contracts, efficiency wages, and the minimum wage are explanations for why

• A)competition results in price wars.
• B)wages tend to be inflexible downward.
• C)the aggregate demand curve slopes downward.
• D)there is little support for the existence of a real-balances effect.

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Definitions:

Lumbar Spine

The lower part of the spine consisting of five vertebrae, which are designated L1 through L5 and are located in the lower back area.

Dactylogram

An impression or imprint of a finger; a fingerprint.

Fingerprint

The unique pattern formed by the ridges on the tip of a human finger, used for identification purposes.

Dactylic

Pertaining to or consisting of dactyls, a form of meter in poetry characterized by a stressed syllable followed by two unstressed syllables.