An efficiency wage is ________ because the result is ________.
A) set below the equilibrium real wage; reduced turnover and more work effort
B) set above the equilibrium real wage; reduced turnover and more work effort
C) not often used; not much different from minimum wage use
D) set above the equilibrium real wage; increased turnover and more work effort
E) set above the equilibrium real wage; reduced turnover and less work effort
Question 2
The figure above shows a nation's consumption function. If disposable income is 2 trillion, then the MPC is ________ and saving is ________.
A) negative; positive
B) positive; zero
C) positive; negative
D) positive; positive
E) negative; negative
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