Four Employers Have Justified Their Actions as Follows

question 89

Multiple Choice

Four employers have justified their actions as follows.Whose logic is inconsistent with the logic of efficiency wage theory?

• A)Jay develops a new assembly line technology that limits the amount shirking workers may do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
• B)Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
• C)Ray pays his workers in a developing country more than the going wage, hoping that they will get a better diet and so be more productive.
• D)Ms. Fay pays her workers the market wages, but she hires more supervisors to make sure workers do not shirk.

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Definitions:

Two-factor Theory

A concept in psychology that proposes that emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory in psychology suggesting that emotional experiences occur simultaneously with physiological responses, rather than one causing the other.

Tranquilizing Drugs

Medications used to reduce tension or anxiety, often by depressing central nervous system activity.