Using an Efficiency Wage Theory,why Do Some Individuals Earn More

question 134

Multiple Choice

Using an efficiency wage theory,why do some individuals earn more than the market equilibrium wage?

• A) Workers who earn more are those who are more productive.
• B) Workers need to earn more to be willing to accept dangerous working conditions.
• C) Workers need to earn more to be willing to accept a safe indoor job.
• D) Workers who are more educated and better trained are able to earn more than the equilibrium wage.
• E) Workers who earn more tend to be concentrated in a single occupation.

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Definitions:

Distribution

Refers to the way in which something is shared out among a group or spread over an area.

Alternative Hypothesis

The hypothesis that proposes there is a statistically significant difference between two or more sets of data, contrasting the null hypothesis.

Region of Rejection

The range of values for which the null hypothesis is rejected in favor of the alternative hypothesis in hypothesis testing.

p < .05

Indicates that the probability of the observed data occurring under the null hypothesis is less than 5%, suggesting statistical significance.