Suppose New Electronic Devices Make It Easier to Monitor the Effort

question 82

Multiple Choice

Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the level of employment?

• A) Increases, but some unemployment remains
• B) Increases, and the labor market reaches full employment
• C) Decreases
• D) Does not change

---

Definitions:

Mutualistic Relationships

Interactions between two species where both benefit and often depend on one another for survival or for certain benefits.

Plant Roots

The part of a plant that typically lies below the surface of the soil and is responsible for water and nutrient absorption.

Poplar Trees

Fast-growing trees of the genus Populus, characteristically having lightweight wood and catkin flowers.

TCE

Trichloroethylene, a volatile organic compound used mainly as an industrial solvent and in the manufacture of other chemicals, but is known to be a human carcinogen.