Efficiency Wage Theory Suggests That

question 48

Multiple Choice

Efficiency wage theory suggests that:

• A) unskilled workers will have a lower turnover rate than skilled workers.
• B) firms will be more resistant to wage increases as the labour market tightens.
• C) productivity might decrease if the wage rate is too low.
• D) the government can only set tax rates so high before people will prefer not to work.
• E) workers will be paid less than their reservation wage.

---

Definitions:

Age 75

Identifies a specific age milestone, reflecting a period in late adulthood associated with experiences of retirement, possibly increased leisure time, and potentially facing age-related health challenges.

Young-old

A subcategory within the elderly population, often defined as those aged between 65 and 74, typically characterized by relatively good health and active involvement in life.

Society's Stereotypes

Overgeneralized beliefs about a particular category of people that can affect perceptions and social interactions.

Nursing Homes

Institutions providing residential care for elderly or disabled people.