Suppose New Electronic Devices Make It Easier to Monitor the Effort

question 83

Multiple Choice

Suppose new electronic devices make it easier to monitor the effort levels of workers. What happens to the NSC curve in the efficiency wage model?

• A) Shifts upward
• B) Shifts downward
• C) Remains the same
• D) The NSC curve remains the same, and the labor supply curve shifts leftward because shirking workers will leave the labor force.

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Definitions:

Market-Oriented Economy

A market-oriented economy is one where economic decisions and the pricing of goods and services are guided by the interactions of individuals and businesses in the marketplace.

Enforce Contracts

The legal process of ensuring that the terms of a contract are upheld by the parties involved.

Private Property

A legal designation for the ownership of property by non-governmental legal entities, giving the owner exclusive rights over the use, disposal, and benefits of the property.

Federal Government

The federal government is the national government of a federated state, which holds the authority to govern the entire country and is responsible for areas such as defense, foreign policy, and interstate commerce.