Four Employers Have Justified Their Actions as Follows

question 68

Multiple Choice

Four employers have justified their actions as follows.Whose logic is not consistent with the logic of efficiency wage theory?

• A)Jay develops a new assembly line technology that limits the amount of 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)All of the above are not consistent with the logic of efficiency wage theory.

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Definitions:

Broca's Area

A region in the frontal lobe of the brain associated with speech production and language processing.

Temporal Lobe

A region of the brain located beneath the lateral fissure, involved in processing sensory input into derived meanings for the appropriate retention of visual memory, language comprehension, and emotion association.

Biological Basis

The underlying genetic, neurobiological, and physiological foundations that contribute to behaviors, traits, and conditions.

Language Acquisition

The process by which humans gain the ability to perceive, produce, and understand language.