In the Efficiency Wage Model,if the Real Wage Is Higher

question 8

Multiple Choice

In the efficiency wage model,if the real wage is higher than the market-clearing wage so that there is an excess supply of labor

• A)firms will hire new workers at lower wages.
• B)firms will replace high-paid workers with low-paid, formerly unemployed workers.
• C)employers will not hire workers who are willing to work for a lower wage.
• D)firms will demand a higher level of effort from existing employees.

---

Definitions:

Yum! Brands

A multinational corporation that operates or licenses Taco Bell, KFC, Pizza Hut, and other fast-food restaurant chains worldwide.

Market Penetration

A strategy to increase sales of existing products or services on current markets, thereby increasing the market share.

Chocolate Chip Cookie Dough

An uncooked blend of ingredients used to make chocolate chip cookies, often enjoyed as a snack.

Increased Promotion

A strategy involving the intensification of marketing efforts to boost awareness, interest, and sales of a product or service.