The Theory of "Efficiency Wages" Provides

question 8

Multiple Choice

The theory of "efficiency wages" provides

• A)a way in which firms can pay workers less than the market-clearing wage.
• B)an explanation for the high wages that unions are able to extract from firms.
• C)many firms with a good reason to dismiss workers.
• D)most workers with a good reason to quit.
• E)one explanation for why wages do not readily fall in response to excess supply in labour markets.

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Definitions:

Transtheoretical Model

A theory of behavior change that outlines five stages individuals move through when modifying behavior, from precontemplation to maintenance.

Relapse

The recurrence of a disease or symptoms after a period of improvement.

Maintenance Stage

The phase in behavior change models where individuals work to sustain their newly adopted healthier behaviors over time.

Action Stage

A phase in the Transtheoretical Model of Behavior Change where individuals actively implement behavior changes towards a goal.