The Efficiency Wage Theory States That by Paying Their Employees

question 75

Multiple Choice

The efficiency wage theory states that by paying their employees more than the market-clearing wage, employers hope to

• A) reduce productivity.
• B) set up incentives for employees to shirk their duties.
• C) increase turnover.
• D) improve employee morale.

---

Definitions:

Blended Family

Two adults and their children. Because of divorce, separation, death, or adoption, the children are the offspring of other biological parents or of just one of the adults raising them.

Natural Family

An alternative term often used to refer to a nuclear family, emphasizing biological relationships within the family unit.

Extended Family

Relatives such as aunts, uncles, cousins, or grandparents and/or unrelated persons who are part of a family unit.

Family of Origin

The immediate family unit in which a person is born or raised, influencing their early development and values.