Which Statement by an Employer Is Consistent with the Efficiency

question 53

Multiple Choice

Which statement by an employer is consistent with the efficiency wage theory?

• A)"I pay more than the going rate so that my employees work hard."
• B)"I pay only enough to attract workers who are at the bottom of the pay scale."
• C)"I love it when unemployment goes up because that drives down my wage costs."
• D)"Workers can always find jobs,if only they lower their expectations."
• E)"Unions have only their current members' interests at heart."

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Definitions:

Par Value

The face value of a bond or stock, representing the nominal or original value as fixed in the certificate or instrument.

Market Value

The current price at which an asset or service can be bought or sold.

Treasury Stock-Common

Shares of a company's own stock that it has reacquired from shareholders and are considered issued but not outstanding.

Par Common Stock

The nominal or face value of common stock as specified in the corporate charter, which bears no direct relation to its market value.