Microeconomics 2012 -

Firms in 2012 were holding excess labor productivity. With high unemployment, surviving workers faced a high cost of job loss. According to efficiency wage theory, employers could pay slightly above market-clearing wages to ensure effort, while not hiring additional workers. This resulted in a for skilled positions—adding more unemployed people did not lower wages.

The ultimate academic validation of the year’s microeconomic themes came in October Microeconomics 2012

Expect questions on comparative advantage, world price takers, and the effects of domestic versus imported goods. 3. Recommended Study Tools AP® Microeconomics 2012 Scoring Guidelines - College Board Firms in 2012 were holding excess labor productivity