The Theory of Efficiency Wages Asserts That

question 219

Multiple Choice

The theory of efficiency wages asserts that

• A) unions are often successful in forcing employers to pay higher wages.
• B) employers strive to hold wages below equilibrium levels.
• C) employers may find it profitable to pay above-equilibrium wages.
• D) efficient workers actually earn lower wages than those earned by inefficient workers.

---

Definitions:

Hormone Replacement Therapy

Compensating for reductions in hormones, such as in menopause, by taking hormones.

Heart Disease

A broad term for a range of diseases affecting the heart and blood vessels, including coronary artery disease, heart rhythm problems, and heart defects.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated, posing significant health risks.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including conditions such as hypertension, coronary artery disease, and heart failure.