A Firm Might Choose to Pay Its Employees a Wage

question 38

Multiple Choice

A firm might choose to pay its employees a wage higher than that which would clear the market because:

• A)the higher wage raises the opportunity cost of shirking
• B)the higher wage may shift the labor demand curve to the left
• C)the firm will have higher turnover,allowing new workers to invigorate the work place
• D)the higher wage solves the free-rider problem

Identify the consequences of government programs on agriculture, including ethanol policies and the Conservation Reserve Program.

Examine the relationship between agricultural production, market dynamics, and consumer spending on food.

Gain insight into the factors influencing farm incomes and the price stability of agricultural products.

Appreciate the long-term trends in farm productivity, exports, and the economic conditions affecting U.S. farmers.

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Definitions:

Federal Bureaucracy

A system of agencies and departments that constitute the executive arm of the federal government, responsible for implementing and administering federal laws and policies.

Civil Servants

Employees of the government who are hired to implement public policy, administer government services, and support elected officials.

Bureaucratic Autonomy

The degree to which government agencies and departments can operate independently of political leaders or outside interests, often to maintain impartial and effective administration.

Market Reforms

Market reforms refer to changes made to an economy with the goal of improving efficiency and growth by increasing the role of market forces (supply and demand) in determining the production and distribution of goods and services.