If fiRms Are Paying Efficiency Wages, They

question 139

Multiple Choice

If firms are paying efficiency wages, they

• A) may be reluctant to increase nominal wages when aggregate demand increases.
• B) are highly vulnerable to import competition.
• C) may be targeted for takeover by firms paying market wages.
• D) may be reluctant to cut wages when aggregate demand declines.

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Definitions:

GST Remittance

This is the process of sending the collected Goods and Services Tax to the governing tax authority.

GST Returns

The periodic filing with the taxation authority detailing sales, the GST collected on sales, and the GST paid on purchases.

Correct To The Cent

Adjusting a monetary amount to ensure accuracy up to the smallest currency unit, often referring to rounding to the nearest cent.

Rate Of Return

The increase or decrease in the value of an investment within a defined timeframe, represented as a percent of the investment's initial price.