The Theory That Holds That Firms May Try to Increase

question 84

Multiple Choice

The theory that holds that firms may try to increase productivity by paying a wage in excess of the market-clearing wage is called the

• A) efficiency-wage theory.
• B) reservation wage theory.
• C) excess wage theory.
• D) wage-inflation theory.

Understand the role of social learning in observing and imitating behaviors leading to acquiring new skills or habits.

Recognize the effect of vicarious punishment versus vicarious reinforcement on behavior modification.

Acknowledge the importance of self-efficacy in learning and behavior change.

Appreciate the relevance of social learning theory in explaining human learning through observation and imitation.

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Definitions:

Budget Line

Displays combinations of products that a consumer can afford with a fixed budget, based on their prices.

Price Ratio

The relationship between the prices of two goods, indicating how many units of one good can be exchanged for one unit of the other.

Utility Ratio

The comparison of the utility (satisfaction) received from one choice relative to another.

Capital Goods

Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.