What Term Best Refers to a Wage Payment Made to an Agent

question 29

Multiple Choice

What term best refers to a wage payment made to an agent that exceeds his opportunity cost of working and discourages the agent from shirking?

• A)Living wage
• B)Efficiency wage
• C)Minimum wage
• D)Efficiency payment
• E)Termination wage

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Definitions:

Pollution

The introduction of contaminants into the natural environment that cause adverse changes and harm to the ecosystem.

Market Failure

A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.

Business Sector

A segment of the economy that represents the activities of businesses, corporations, and private enterprises that provide goods and services to consumers.

Deng Xiaoping

A Chinese communist leader who initiated significant economic reforms in China from the late 1970s, leading to its market economy transformation.