If All Employers Pay an Efficiency Wage, Then, Comparing Average

question 8

Multiple Choice

If all employers pay an efficiency wage, then, comparing average wages and unemployment rates across areas, and if workers in areas with low unemployment rate can easily find alternative jobs, one would expect

• A) average wages to be directly (positively) related to unemployment rates.
• B) average wages times one minus the unemployment rate to be the same across areas.
• C) the duration of unemployment, but not necessarily the rate, to be inversely related to the average wage.
• D) average wages will be higher in areas with low unemployment rates.

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Definitions:

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Breaking down an issue into a sequence of rational, related inquiries.

Logical Questions

Questions designed to assess an individual's reasoning skills, often used in interviews and tests to evaluate problem-solving abilities.

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