If Productivity Increases as Wages Increase and Firms Pay a Wage

question 201

Multiple Choice

If productivity increases as wages increase and firms pay a wage above the market clearing wage, then

• A) these firms will go out of business in the long run because they will not be able to compete with firms paying lower wages.
• B) these firms will face an excess demand for labor and will be able to hire the best workers in the market.
• C) these firms will have lower profit levels than their competitors.
• D) a potential benefit these firms may receive is a reduction in employee turnover.

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Definitions:

Total Impedance

The combined resistance and reactance in an electrical circuit, measuring the circuit's opposition to alternating current.

Capacitive Reactance

The resistance that a capacitor offers to the changes in voltage in an AC circuit.

Series RC

A circuit configuration consisting of a resistor (R) and a capacitor (C) connected in series, often used in filters and timing applications.

Series RC

A circuit configuration consisting of a resistor and a capacitor connected in series.