Paying Efficiency Wages Means That Wages Are

question 11

Multiple Choice

Paying efficiency wages means that wages are

• A)above equilibrium,and profits are higher than otherwise.
• B)above equilibrium,and profits are lower than otherwise.
• C)below equilibrium,and profits are higher than otherwise.
• D)below equilibrium,and profits are lower than otherwise.

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Definitions:

Interest Rate

The expense, depicted as a percentage of the principal sum, that a borrower must bear for the borrowing of assets from a lender.

Foreign-Currency Exchange

The conversion of one country's currency into another's, a key process in international trade and investments.

Net Exports

The disparity between what a nation exports and what it imports in total.

Import Quota

A limit set by the government on the amount or cost of products allowed to be brought into a country from abroad.