Which of the Following Is NOT an Example of an Efficiency

question 16

Multiple Choice

Which of the following is NOT an example of an efficiency wage?

• A) A firm paying a higher wage has less turnover costs.
• B) A firm paying a higher wage has less supervision costs.
• C) A firm paying a higher wage employs more educated workers.
• D) A firm paying a higher wage gets more effort from its workers.

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Definitions:

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Exchange Stage

A phase in the development of relationships, especially in the workplace, where mutual values, benefits, and commitments are established between parties.

Group Norms

Shared expectations and rules that guide the behavior of people within a group.

Social Contract

A theory or model that explains how society is organized and individuals' mutual obligations based on an agreement among the society’s members or between the governed and the government.