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:

Depression

A common mental health disorder characterized by persistent sadness, lack of interest, and a range of physical and emotional problems.

Winter

The coldest season of the year, characterized by shorter days, longer nights, and typically, snowfall or colder temperatures, depending on the region.

Spring

One of the four temperate seasons, typically associated with rebirth, renewal, and growth.

Fall

A decrease in position or status; alternatively, the act of falling or a season between summer and winter characterized by cooler temperatures and changing foliage.