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

question 19

Multiple Choice

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

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

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Definitions:

Compromising

A conflict resolution strategy where each party gives up something to reach a mutually acceptable solution.

Satisfied

The state of being content or fulfilled with a situation, outcome, or transaction.

Accommodation

An adaptation or adjustment made to suit a new condition or environment; in social relations, the process of adapting or adjusting one's behavior to reduce conflict.

Conflict Management Strategy

Methods or approaches used to handle disputes or disagreements in a constructive manner.