Efficiency Wages

question 33

Multiple Choice

Efficiency wages

• A)increase frictional unemployment by keeping wages above equilibrium.
• B)decrease frictional unemployment by keeping wages at equilibrium.
• C)increase structural unemployment by keeping wages above equilibrium.
• D)decrease structural unemployment by keeping wages at equilibrium.

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Definitions:

Equivalent Imports

Goods or services brought into a country that serve the same purpose as locally produced goods or services.

Quota

A government-imposed trade restriction limiting the number or monetary value of goods that can be imported or exported during a specified period.

Tariff

A tax imposed on imported goods, often to protect domestic industries or to generate revenue.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they do sell it for, representing their profit.