Answer:
Paying higher wages boost up employees to be more productive, as higher wages is considered as a source of motivation to the employees and they will improve their level of work and complete their task in an effective and efficient manner which leads to productivity at workplace. Hence, this automatically leads to timely completion of work at almost zero cost.
The reasons why some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor are as follows:
- Paying higher wages helps workers to be healthier in some developing countries.
- Higher wages attract a more competent pool of workers.
- Paying higher wages encourages workers to be more productive.
Answer:
Increased government spending will be less effective for raising the Marginal Propensity to Consume.
Explanation:
The Marginal Propensity to Consume depends on disposable income, and disposable income is the money that individuals have after paying tax.
If the government increases spending, it will also increase taxes to finance spending, and if taxes are higher, people will have less disposable income, and even if their marginal propensity to consume increases, because they now have less money, the will spend less in total.
Answer:
False
Explanation:
A deferred annuity is a contract that guarantees a regular income or lump sum payments at a future date. It is a popular and effective way to supplement one's income in retirement days. Insurance companies mostly offer deferred annuities. The insured pays their premiums now and opts to delay in collecting their benefits until some later years. Deferred annuities are also a way of making long term savings.
Answer:
Corporate espionage.
Explanation:
Corporate espionage is the act of utilizing espionage techniques for business or financial purposes. We normally consider "espionage" regarding spies taking a shot at benefit of one government attempting to get data about another.
Answer:
creates a shortage
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Because price is set below equilibrium price, demand would outstrip supply and this would lead to a shortage
Effects of a price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
