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.

Understand the legal significance of nominal consideration and its role in contract law.

Assess the legal enforceability of promises in employment contracts and gift promises.

Recognize when consideration is not required for a contract to be legally binding.

Understand the basic concepts and roles of signal transduction pathways in cellular communication.

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Definitions:

Sure Payment

A guaranteed payment or financial transaction where the receiver has complete certainty of receiving the specified amount.

Lottery

A form of gambling involving the drawing of numbers for a prize, often used as a method to allocate scarce resources such as green cards or in decision theory as a risk model.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Utility

A concept in economics that measures the satisfaction, happiness, or benefit that results from the consumption of goods and services.