Efficiency Wages Are

question 133

Multiple Choice

Efficiency wages are

• A)above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages.
• B)wage payments necessary to compensate workers for unpleasant or risky work conditions.
• C)usually less than market wages.
• D)relevant to macroeconomics because they explain rightward shifts in aggregate demand.

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Definitions:

Net Income

Total income of the company after expenses, taxes, and any other costs are deducted from its revenue.

Preferred Dividends

Dividends that are paid to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares of its common stock.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been deducted from total revenue.