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1. 2. Romeo and Juliet do not have enough money to start their own book store so

ID: 1173209 • Letter: 1

Question

1.

2.

Romeo and Juliet do not have enough money to start their own book store so they borrow the money from someone else. Which of the following is true? their consumption expenditures are being financed by someone else's saving. their consumption expenditures are being financed by someone else's investment. their investments are being financed by someone else's saving. their saving is being financed by someone else's investment. Kam decides to hire some additional workers for his moving company. The equilibrium wage is $13 per hour. Efficiency wage theory suggests that it is reasonable for Kam to offer $13 per hour. less than $13 per hour, since some people would be willing to work for less less than $13 an hour to prevent shirking. more than $13 per hour so as to attract a better pool of applicants.

Explanation / Answer

ANS1.- THEIR INVESTMENTS ARE BEING FINACED BY SOMEONE ELSE'SSAVINGS.

ANS2.- $13 PER HOUR.