Which Theory Explains the Fact That Some Firms May Choose

question 431

Multiple Choice

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

• A)the theory of efficiency wages
• B)the marginal-productivity theory
• C)human-capital theory
• D)signaling theory

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Definitions:

Organic Product(s)

Chemical compounds consisting of carbon that are produced as the outcomes of organic reactions.

Major

Often refers to the main or predominant component, phase, or aspect in a mixture, compound, or scenario.

Reaction

A reaction is a process in which one or more substances, the reactants, are converted to one or more different substances, the products.

Complex Metal Hydrides

A class of compounds formed by the combination of a metal with hydrogen, typically used as hydrogen storage materials.