9. The concept of efficiency wages means that . . .

(a) labor markets are more efficient when market power is balanced

between workers and employers.

(b) certain workers are paid more because of discrimination.

(c) no deadweight loss exists when labor markets function properly.

(d) workers can be motivated if they are paid slightly higher than

market-level wages.

(e) workers can be compensated by benefits other than wages.

10. The concept of dual labor markets means that . . .

(a) employers have more market power than employees.

(b) employees have more market power than employers.

(c) some workers have to hold two jobs.

(d) some workers have good pay and working conditions while others

have low pay and poor working conditions.

(e) wages among related jobs tend to move in tandem.

11. A Lorenz curve measures . . .

(a) national income over time.

(b) unrealized capital gains.

(c) the benefits of exchange.

(d) the distribution of income.

(e) transfer payments.

12. If a Lorenz curve is a 45-degree line sloping upwards, this means . . .

(a) that the society's distribution of income is highly unequal.

(b) that one household receives all the income in the society.

(c) that the society directs all its efforts toward the least fortunate.

(d) that all households in the society have the same income.

(e) that the society's Gini coefficient is 0.