Which Theory Explains the Fact That Some Firms May Choose

question 431

Multiple Choice

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

• A)the theory of efficiency wages
• B)the marginal-productivity theory
• C)human-capital theory
• D)signaling theory

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Bottom-line

The final total of an account, balance sheet, or financial result, often referring to a company's earnings or profits.

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Moral principles that govern a person's behavior or the conducting of an activity, often applied in professional and business environments.

Moral Standards

Principles that govern individuals' distinctions between right and wrong behavior, often derived from societal norms, culture, or religion.

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Fundamental beliefs and moral guidelines derived from religious teachings that influence behavior and decision-making.