The Theory of Efficiency Wages Challenges the Assumption That

question 9

Multiple Choice

The theory of efficiency wages challenges the assumption that

• A)workers are efficient.
• B)workers have an incentive to shirk their responsibilities to their employers.
• C)wages must always adjust to balance labor supply and labor demand.
• D)firms sometimes choose to pay their workers above-equilibrium wages.

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Definitions:

Persian Gulf

A shallow marginal sea of the Indian Ocean between the Arabian Peninsula and Iran, noted for its strategic and economic importance.

Sea of Japan

A marginal sea between the Japanese archipelago, the Korean Peninsula, and Russia.

Persian Gulf

A shallow marginal sea of the Indian Ocean that lies between the Arabian Peninsula and Iran, known for its strategic and economic importance due to its oil reserves.

Back-arc Basin

A geological feature located behind a volcanic arc, formed by the stretching and sinking of an oceanic plate.