If the Efficiency Wage Theory Holds

question 73

Multiple Choice

If the efficiency wage theory holds,

• A) only highly qualified, efficient workers get the jobs.
• B) the labor market clears at the equilibrium wage rate in the long-run.
• C) workers with jobs will receive high wages and workers without jobs would be willing to work for lower wages but are closed out of the market.
• D) the labor market is efficient.

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Definitions:

Expressive Vocabulary

The set of words a person can actively use in communication to express thoughts, feelings, and ideas.

Receptive Vocabulary

The store of words that an individual understands when heard or read, which typically exceeds the words they use in speech or writing.

Babbling

The stage in language acquisition where infants produce unintelligible sounds, combining vowels and consonants like "ba" and "da," which precedes speech development.

Cultural Background

The cultural experiences, traditions, and values that shape an individual's beliefs and behaviors.