Refer to the scenario above. In this case, the employer may prevent shirking by ________.
A) paying an efficiency wage to each worker
B) paying a wage less than minimum wage
C) reducing the nominal wage paid to workers
D) reducing the real wage paid to workers
Question 2
If a middle-eastern war reduced the quantity of crude petroleum available for export to Japan and the United States by 40, and the U.S. government responded by imposing price ceilings on petroleum,
A) more petroleum would be available for Japanese users.
B) the demand for crude petroleum in the U.S. would increase.
C) the demand for natural gas in the U.S. would decline.
D) the price of petroleum would rise even higher in Japan.
E) all of the above would be likely to result.
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