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Unformatted text preview: loyment Skill: Analytic AACSB: Analytic Skills 25) A firm may benefit by paying workers more than the market clearing wage because the higher wages may lead to all of the following EXCEPT A) lower worker turnover. B) improved C) worker morale. reduced D) shirking of work. reduced taxed. Answer: D Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 26) If, as a result of imperfect information, firms set their wage rates below the market clearing wage rate A) unemployment increases. B) there will be a surplus of workers. C) there will be a shortage of workers. D) there will be equilibrium in the labor market. Answer: C Diff: 1 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 27) If, as a result of imperfect information, firms set their wage rates above the market clearing wage rate, A) unemployment decreases. B) there will be a surplus of workers. C) there will be a shortage of workers. D) there will be equilibrium in the labor mar...
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This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.

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