Which Is Not a Property of an Optimal Efficiency Wage

question 10

Multiple Choice

Which is not a property of an optimal efficiency wage?

• A) There is involuntary unemployment.
• B) The efficiency wage is higher than the competitive wage.
• C) Employed workers will not shirk on the job.
• D) Any structural unemployment that results from an efficiency wage is efficient for the economy as it helps sort nonshirkers and shirkers into good and bad jobs, respectively.
• E) Employment will be less with an efficiency wage than with a competitive wage.

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Definitions:

Outbound Transportation Costs

Expenses related to the shipping of goods from a manufacturer or distributor to their final destination, typically a retailer or end customer.

X-y Grid

A graphical representation system using two axes (horizontal x-axis and vertical y-axis) to plot points, functions, or data, commonly used in mathematics and physics.

Super Assembly Facility

A super assembly facility is a high-capacity production site designed to efficiently assemble large quantities of products, often functioning as a central point in the supply chain for final product assembly.

Outbound Transportation Costs

Expenses associated with moving goods from the manufacturer or seller to their final destination, including shipping, freight, and handling fees.