Sometimes Wages Are Set Above the Equilibrium Level When Firms

question 222

Multiple Choice

Sometimes wages are set above the equilibrium level when firms pay

• A)workers with more seniority higher wages than newly hired workers.
• B)efficiency wages to reduce turnover.
• C)compensating differentials to workers who work the night shift.
• D)more attractive salespeople higher wages than less attractive salespeople.

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Definitions:

Sum of Its Parts

A concept suggesting that the total or overall effect of something is greater than the mere addition of its individual elements.

Horizontal Communication

A form of communication that occurs among peers or colleagues within the same level of an organization, facilitating coordination and problem-solving.

Traditional Model

A conventional or long-established approach, method, or system.

Human Relations Model

A management approach emphasizing personal development, motivation, and employee satisfaction to improve organizational performance.