Initially a Firm Pays a Wage and Gets an Output

question 61

Multiple Choice

Initially a firm pays a wage and gets an output per worker which are given index numbers of 1.00.Five possible 3 percent increases in the wage and the accompanying output per worker are as follows: 1.03 and 1.09,1.06 and 1.17,1.09 and 1.24,1.13 and 1.29,1.16 and 1.31.What is the efficiency wage?

• A)1.03
• B)1.06
• C)1.09
• D)1.13
• E)1.16

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Definitions:

Hydrochloric Acid

A strong, corrosive acid found in the stomach that aids in digestion by breaking down foods and killing pathogens.

Parietal Cells

Stomach cells that secrete hydrochloric acid, which is necessary to convert pepsinogen to pepsin. Parietal cells also secrete intrinsic factor, which is necessary for vitamin B12 absorption.

Intrinsic Factor

A substance secreted by parietal cells in the lining of the stomach. It is necessary for vitamin B12 absorption.

Sucrase

An enzyme that digests sugars.