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:

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.

Purchases Discount

A reduction in the cost of goods or services, granted by the seller to the buyer, when the buyer pays within a specified time frame.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt quick payment or bulk purchases.

Trade Discounts

Reductions in the listed price of goods and services, offered by sellers to buyers in the business-to-business market.