1. Why might some firms voluntarily pay workers a wage above the market equilibrium?

I. Paying higher wages causes worker turnover to increase.

II. Paying higher wages increases the number of job applicants.

III. Paying higher wages allows employees to purchase enough food to be healthy.

IV. Paying higher wages encourages workers to be more productive.

A. II, III, and IV only

B. II and III only

C. I, II, III, and IV

D. I, III, and IV only

2. Productivity is measured by:

A. Dividing total output by the population

B. Dividing total employment by the population

C. Dividing total output by the number of hours worked

D. Dividing total savings by total investment

3. Which of the following government policies would lead to an increase in productivity?

I. The government reduces taxes on interest earned from savings accounts.

II. The government increases expenditures on nutrition programs for malnourished workers.

III. The government increases the interest rate on student loans.

IV. The government increases spending on job training programs.

A. I, II, and III only

B. I, II, III, and IV

C. I, II, and IV only

D. I and IV only