An Efficiency Wage Is One That

question 15

Multiple Choice

An efficiency wage is one that

• A) increases the velocity of money.
• B) minimizes the firm's labor cost per unit of output.
• C) results from significant changes in technology and labor.
• D) is imposed by government to guarantee workers a living wage.

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Definitions:

Pectoralis Major

A large muscle in the upper chest that aids in the rotation and movement of the arm across the body.

Diaphragm

A large, dome-shaped muscle located below the lungs that contracts and relaxes to aid in the breathing process.

Flexor Digitorum Profundus

A muscle located in the forearm that flexes the fingers at the distal interphalangeal joints.

Distal Portion

The part of a limb or structure that is farthest away from the center of the body.