Which Term Refers to a Wage Rate Above What Is

question 75

Multiple Choice

Which term refers to a wage rate above what is necessary to attract a sufficient number of workers?  

• A) market-clearing wage 
• B) efficiency wage 
• C) marginal productivity wage 
• D) minimum wage

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Definitions:

Representativeness Heuristic

Estimating the likelihood of events in terms of how well they seem to represent, or match, particular prototypes; may lead us to ignore other relevant information.

Availability Heuristic

Estimating the likelihood of events based on their availability in memory; if instances come readily to mind (perhaps because of their vividness), we presume such events are common.

Insight

A sudden realization of a problem’s solution; contrasts with strategy-based solutions.

Engineering Problem

A challenge or issue within the field of engineering that requires a solution, often involving mathematical, scientific, and practical knowledge.