"Efficiency Wages" Are Said to Exist When Wages Are

question 98

Multiple Choice

"Efficiency wages" are said to exist when wages are

• A)such that cyclical unemployment is zero.
• B)such that the NAIRU is zero.
• C)high enough above market levels that workers increase their productivity.
• D)equal to the market wage.
• E)just high enough to induce a worker to take a job.

---

Definitions:

Vestibular Organ

is the sensory system located in the inner ear that helps control balance and eye movements.

Cochlea

The coiled structure in the inner ear that contains the basilar membrane.

Olfactory Receptor Neurons

Specialized nerve cells located in the nasal cavity that detect chemical substances in the air, leading to the sense of smell.

Olfactory Epithelium

A mucous membrane at the top of the nasal cavity; contains the olfactory receptor neurons that respond to airborne molecules called odorants.