An Efficiency Wage Is Designed to

question 41

Multiple Choice

An efficiency wage is designed to

• A) induce more work effort.
• B) keep the minimum wage from rising.
• C) keep the minimum wage from falling.
• D) to induce more employment.
• E) decrease the need for workers to search for jobs.

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Definitions:

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time.

A.W. Phillips

An economist known for describing the inverse relationship between rates of unemployment and corresponding rates of inflation, which is now known as the Phillips Curve.

United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

Rate Of Change

The speed at which a variable changes over a specific period of time.