If an Employer Believes in the Theory of Efficiency Wages

question 133

Multiple Choice

If an employer believes in the theory of efficiency wages, he will raise wages in effort to do which of the following?

• A)increase worker effort and increase worker turnover
• B)increase worker effort and decrease worker turnover
• C)decrease worker effort and increase worker turnover
• D)decrease worker effort and decrease worker turnover

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Definitions:

Journal Entry

A record in accounting that notes every transaction with debits and credits in the financial books.

Cash Conveyed

The transfer of cash from one party to another, often used in the context of financial transactions or payments.

Beneficiary

An individual or entity entitled to benefits or proceeds from an insurance policy, will, or trust.

Journal Entry

An individual record in an accounting journal that documents a specific financial transaction.