Firms Are Most Likely to Set an Efficiency Wage Above

question 19

Multiple Choice

Firms are most likely to set an efficiency wage above the competitive wage if

• A) the firm does not know what the competitive wage is.
• B) workers refuse to work at the competitive wage.
• C) most of its workers are not educated.
• D) firms find it expensive to monitor worker output.
• E) the firm is not concerned with maximizing profits.

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Definitions:

Positive Psychology

A social and intellectual movement within the discipline of psychology that focuses on human strengths and how people can flourish and be successful.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, with the aim of advancing the creation, communication, and application of psychological knowledge to benefit society.

Positive Psychology

An area of psychology focused on the study and enhancement of positive human functioning, well-being, and flourishing on multiple levels.

Resilience

A person’s ability to recover and often prosper following some consequential life event.