How Does the Theory of Efficiency Wages Explain Above-Equilibrium Wages

question 26

Multiple Choice

How does the theory of efficiency wages explain above-equilibrium wages?

• A)employers are forced to pay higher wages in efficient markets
• B)workers get a rise in wage when they prove they are increasing their productivity
• C)employers give their workers a higher wage in the hope that it will lead to increased productivity
• D)workers demand higher wages to compensate for poor fringe benefits

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Definitions:

Stent

A tubular support device implanted in a blood vessel, canal, or duct to prevent or counteract a disease-induced localized flow constriction.

Coronary Artery

Blood vessels that supply blood to the heart muscle, critical for providing the necessary oxygen and nutrients.

Balloon Catheter

A medical device consisting of a thin tube and an inflatable balloon that is used to open up blocked or narrowed blood vessels.

Transient Ischemic Attack

Temporary interruption of blood flow in the brain caused by small clots closing off blood vessels, may also be referred to as a TIA.