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

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Definitions:

Ice Cream

A frozen dessert made from dairy products, sweeteners, and flavorings, enjoyed as a treat or snack.

Apple Pie

A traditional dessert made from apples and pastry dough, often seasoned with cinnamon, sugar, and sometimes butter, and baked until golden brown.

Output

The total amount of goods and services produced by an economy, firm, or machine over a specific period.

Sweaters

Clothing items worn on the upper part of the body, typically knitted or crocheted, designed to keep the wearer warm.