The Efficiency-Wage Theory of Worker Quality Suggests That If Firms

question 148

Multiple Choice

The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage, then highly qualified workers will be

• A)more likely to apply, and unemployment will increase.
• B)more likely to apply, and unemployment will decrease
• C)less likely to apply, and unemployment will Increase.
• D)less likely to apply, and unemployment will increase.

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Definitions:

Tenancy By The Entirety

A form of joint property ownership reserved for married couples, where each spouse has an undivided interest in the property, providing rights of survivorship.

Fee Simple Absolute Ownership

The most complete form of ownership of real estate, conferring unlimited use, control, and inheritance rights.

Tenancy In Common

A form of co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.

Real Property

Land and anything permanently attached to it, such as buildings and structures, differentiated from personal property which can be moved.