The Theory of Efficiency Wages Suggests That Firms May Pay

question 39

Multiple Choice

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

• A)to reduce employee turnover.
• B)to prevent unions from recruiting members.
• C)to reduce the need for minimum wage laws.
• D)to increase the demand for better-skilled workers.

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Definitions:

Anal Stage

A psychoanalytic concept introduced by Freud, referring to the developmental phase where a child's focus is on bowel and bladder elimination and control.

Autonomy Versus Shame

A stage in Erik Erikson's theory of psychosocial development where young children learn to develop a sense of personal control over physical skills and a sense of independence.

Freud's Anal Stage

A developmental phase in Freudian psychoanalysis where a child's focus is on controlling bladder and bowel movements, typically occurring from 18 months to 3 years of age.

Erikson

Refers to Erik H. Erikson, a developmental psychologist and psychoanalyst known for his theory on the psychological development of humans across eight stages of life.