Which of the Following Statements Is True About Efficiency Wages

question 30

Multiple Choice

Which of the following statements is true about efficiency wages?

• A)Efficiency wages reduce monitoring cost of the employer.
• B)Employees benefit more from efficiency wages than employers.
• C)Productivity of the employee is usually unaffected by efficiency wages.
• D)Loafing is more rewarding for employees who earn efficiency wages.

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Definitions:

Tariff on Imports

A levy placed on imported goods and services by a government to shield local industries from overseas competition.

Total Output

The complete quantity of goods or services produced by a company, sector, or economy within a specific timeframe.

Exports

Sales of goods or services produced in one country purchased by residents of another country.

Imported Goods

Goods brought into a country from abroad for sale.