Which of the Following Is a Likely Result of fiRms

question 204

Multiple Choice

Which of the following is a likely result of firms paying efficiency wages?

• A) lesser work effort
• B) a lower wage rate
• C) increased job turnover
• D) reduced supervision costs

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Definitions:

Rationality

Primarily, the ability to think and to act according to goals, plans, and strategies. Rationality is also thinking well and effectively and having good, well-conceived goals, plans, and strategies. In the first instance, rationality is to be contrasted with nonrationality; in the second instance, it is contrasted with irrationality. Worms are nonrational; fools and fanatics are irrational.

Powerful

Pertaining to having great power, influence, or effect.

Empirical Truth

A statement that is true because of the facts and knowable through experience.

A Priori Truth

Knowledge that is true independently of experience, known through reason alone.