The Theory of "Efficiency Wages" Suggests That a Pool of Involuntarily

question 86

Multiple Choice

The theory of "efficiency wages" suggests that a pool of involuntarily unemployed workers

• A)quickly disappears because perfectly-flexible wages eliminates this inefficient waste of resources.
• B)exists only between sessions of wage re-negotiation.
• C)is comprised solely of workers who have failed to meet the productivity standards of potential employers.
• D)is irrelevant to the behaviour of employed workers.
• E)provides an incentive for employees to work hard so they are not laid off.

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Definitions:

Birth Rates

The number of live births per thousand of the population per year.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, marked by significant technological advancements and changes in manufacturing processes.

Early Years

The initial stages or period of existence of a person, organization, or phenomenon.