Which of the Following Is an Example of an Efficiency

question 41

Multiple Choice

Which of the following is an example of an efficiency wage?

• A)a high wage paid to compensate for dangerous work such as coal mining
• B)an above-equilibrium wage offered by a firm to attract a more talented pool of job applicants
• C)a wage below the minimum wage but supplemented by customer tips
• D)a high wage paid to a college graduate for a high-skill job such as electrical engineering

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Definitions:

French Fries

A popular food item made by cutting potatoes into strips and deep-frying them until crispy.

Utility Function

A mathematical representation that relates the total utility an individual derives from consuming different bundles of goods and services.

Indifference Curves

A graphical representation showing combinations of goods that provide equal satisfaction and utility to a consumer.

Vertical Axis

In graphing, the y-axis, which typically represents the dependent variable or the quantity being measured.