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:

Internal Intercostals

Muscles located between the ribs that aid in the downward movement of the ribcage during exhalation.

Sternocleidomastoid

A muscle in the side of the neck that helps rotate the head and flex the neck.

Serous Membranes

Thin membranes that cover the walls and organs in the thoracic and abdominal cavities, producing serous fluid to lubricate and reduce friction between organs.

Mucous Membranes

Tissue linings that secrete mucus, serving as a protective barrier in various organs and cavities within the body.