Why Would a Firm Elect to Pay the Efficiency Wage

question 72

Multiple Choice

Why would a firm elect to pay the efficiency wage?

• A)To reduce job turnover
• B)All of these
• C)They are required to do so by law.
• D)Firms have an incentive to pay the lowest wage possible.
• E)This is the only wage people are willing to work for.

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Definitions:

School Achievement

The measure of academic performance and the attainment of educational objectives set by educational institutions for students.

Belief Preservation

The tendency for people to hold onto their beliefs even when faced with contrary evidence, also known as belief perseverance.

Fundamental Attribution Error

The tendency to underestimate the importance of situational influences and to overestimate personal, dispositional factors as causes of behavior.

Motivational Bias

A cognitive bias that affects the direction of people's behavior by their underlying motives, desires, or needs.