Which Theory Explains the Fact That Some Firms May Choose

question 184

Multiple Choice

Which theory explains the fact that some firms may choose to pay their employees more than they would normally earn?

• A)human capital theory
• B)signalling theory
• C)the theory of efficiency wages
• D)the efficient market hypothesis

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Definitions:

Rational Part

The aspect of the human mind that is responsible for logic, reasoning, and analytical thinking.

Soul

In many religious, philosophical, and mythological traditions, the incorporeal and immortal essence of a living being.

Faith

Belief, trust, and obedience to a religious deity.

Mere Belief

A conviction held without the support of evidence or rational justification.