The Answer Is: "It Is Sometimes in the Best Interest

question 68

Multiple Choice

The answer is: "It is sometimes in the best interest of business firms to pay their employees higher-than-equilibrium wage rates." What is the question?

• A) What do efficiency wage models imply?
• B) What do classical economists say?
• C) What is the central tenet of Say's law?
• D) What did John Maynard Keynes say was the reason for inflexible wages?
• E) none of the above

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Definitions:

Cars

Motor vehicles with four wheels, primarily used for transporting people rather than goods.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.

Heckscher-Ohlin Model

An economic theory that proposes countries will export products that utilize their abundant and cheap factors of production and import products that require factors of production that are scarce and expensive domestically.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.