Suppose New Electronic Devices Make It Easier to Monitor the Effort

question 99

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 efficiency wage?

• A) Declines, but remains above the market-clearing wage
• B) Declines, and falls below the market-clearing wage
• C) Increases
• D) Does not change

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Definitions:

Meditating

The practice of focusing one's mind in silent reflection for the purpose of relaxing or spiritual growth.

Hypnotized

The state of having one's attention and consciousness altered by hypnotism, making them more open to suggestion.

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Slow brain waves primarily associated with deep sleep and aid in healing and regeneration in the brain.

Electroencephalograph (EEG)

A device used to record the electrical activity of the brain by placing electrodes on the scalp, used in diagnosing conditions and studying brain functions.