If the Efficiency Wage Theory Holds

question 73

Multiple Choice

If the efficiency wage theory holds,

• A) only highly qualified, efficient workers get the jobs.
• B) the labor market clears at the equilibrium wage rate in the long-run.
• C) workers with jobs will receive high wages and workers without jobs would be willing to work for lower wages but are closed out of the market.
• D) the labor market is efficient.

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Definitions:

Germ Layer

One of the three primary layers (ectoderm, mesoderm, endoderm) in early embryonic development from which all tissues and organs develop.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of the skin, central and peripheral nervous systems, eyes, inner ear, and many connective tissues.

Self-Defense

The legally recognized privilege to protect oneself or one’s property against injury by another. The privilege of self-defense protects only acts that are reasonably necessary to protect oneself or one’s property.

Reasonably Necessary

A legal standard indicating actions or measures needed to achieve a particular purpose without being excessive or impractical.