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:

Financial Support

Monetary assistance provided to individuals or groups to help cover expenses and maintain financial stability.

Close Friends

Individuals with whom one shares a deep, personal bond, marked by affection, trust, and support.

Socioemotional Selectivity Theory

A psychological theory that suggests that as people age, they become more selective about their social networks because they place a higher value on emotional satisfaction.

Social Interaction

The process by which individuals act and react to those around them, forming the basis of relationships and societal structure.