Efficiency Wages, Above Equilibrium Minimum Wage Rates, and Higher Union

question 32

Multiple Choice

Efficiency wages, above equilibrium minimum wage rates, and higher union wages are likely to

• A) increase the natural unemployment rate.
• B) increase cyclical unemployment.
• C) reduce the equilibrium real wage rate.
• D) increase the equilibrium real wage rate.
• E) decrease the natural unemployment rate.

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Definitions:

Social Identity Theory

A psychological theory suggesting that an individual’s sense of who they are is based on their group membership(s).

Social Dominance Orientation

An individual's degree of preference for inequality among social groups and the endorsement of ideologies that promote this inequality.

Right-Wing Authoritarianism

A personality and ideological framework characterized by submission to authorities, adherence to conventional norms, and hostility towards those who dissent.

Trait of Disidentification

A psychological process where individuals detach their self-esteem from outcomes in a specific domain to protect their overall self-worth.