If an Employer's Behavior Is Supportive of the Theory of Efficiency

question 26

Multiple Choice

If an employer's behavior is supportive of the theory of efficiency wages, the employer would

• A)raise wages in an effort to increase worker effort.
• B)raise wages in an effort to increase worker turnover.
• C)decrease wages in an effort to increase worker effort.
• D)decrease wages in an effort to increase worker turnover.

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Definitions:

W-9

An IRS form used by individuals to provide their taxpayer identification number to entities that will pay them income during the tax year.

FUTA Taxes

Federal Unemployment Tax Act taxes that employers pay to help fund state workforce agencies.

Withholding Allowance

A figure used to calculate the amount of income tax an employer withholds from an employee's paycheck, based on factors like marital status and number of dependents.

Underpayment Penalty

A penalty charged by tax authorities for failing to pay enough of one's total tax liability by the tax deadline, often calculated as a percentage of the unpaid tax.