More Economics

posted by .

I have an lazy instructor using test bank questions unrelated to my text and need some help. The second question is "anything that makes the efficiency wage rise relative to the market-clearing wage will...A) increase both the quantity demanded and the quantity supplied of labor. B)decrease both the quantity demanded and quantity supplied of labor. C)increase the quantity demanded and decrease the quantity supplied of labor. D)decrease the quantity demanded and increase the quantity supplied of labor.

I think C.

Now the might sound straight-forward but my textbook does not explain efficiency wage that way. It states efficiency wages = above-equilibrium wages paid by firms to increase worker productivity. Nothing about supply & demand. HELP before I jump from the roof!

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply-and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number …
  2. Microeconomics

    In the context of a supply-demand diagram of the low-skill labour market, a minimum wage above the competitive equilibrium will reduce employment relative to the competitive equilibrium. Show that the total revenue earned by labour …
  3. More Economics

    I have an lazy instructor using test bank questions unrelated to my text and need some help. The second question is "anything that makes the efficiency wage rise relative to the market-clearing wage will...A) increase both the quantity …
  4. Economics(Please respond, thank you)

    Given the wage in dollar per day and the CPI for years 1 and 2 how do you calculate the nominal % increase in wage and the real % increase in wage?
  5. Economics(Please help)

    Given the wage in dollar per day and the CPI for years 1 and 2 how do you calculate the nominal % increase in wage and the real % increase in wage?
  6. Economics(Please help)

    Given the wage in dollar per day and the CPI for years 1 and 2 how do you calculate the nominal % increase in wage and the real % increase in wage?
  7. Chemistry(Could someone please help)

    Given the wage in dollar per day and the CPI for years 1 and 2 how do you calculate the nominal % increase in wage and the real % increase in wage?
  8. macroenomics

    Suppose the minimum wage is above the equilibrium wage in the market for unskilled labour. Using a demand and supply diagram of the market for unskilled labour, show the market wage, the number of workers who are employed, and the …
  9. math

    an instructor makes $15 more per hour than an assistant. If the combined hourly wage of the instructor and assistant is $65 , what is the hourly wage of the assistant?
  10. economics

    Can someone help me out with this multiple choice question in AP Macro?

More Similar Questions