How Does the Theory of Efficiency Wages Explain Above-Equilibrium Wages

question 7

Multiple Choice

How does the theory of efficiency wages explain above-equilibrium wages

• A)Employers are forced to pay higher wages in efficient markets.
• B)Employers give their workers a higher wage in the hope that it will lead to increased productivity.
• C)Workers get a raise in wage when they prove they are increasing their productivity.
• D)Workers demand higher wages to compensate for poor fringe benefits.

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Definitions:

Personality Disorders

Extreme and inflexible personality configurations that lead to significant impairment.

Research Methods

Various strategies and techniques used to systematically investigate research questions and hypotheses.

Eccentric

Referring to behavior or habits that are unusual or unconventional.

Cluster A

Odd or eccentric personality disorders; “weird” or “mad.”