A Firm Uses an Efficiency Wage Scheme to Deter Workers

question 101

Multiple Choice

A firm uses an efficiency wage scheme to deter workers from shirking.Suppose a risk-neutral worker that has a reservation wage of $1000.The industry ongoing wage is $2,000.The efficiency wage paid by this firm is $7,000.What is this firm's shirking detection rate?

• A) 5%
• B) 20%
• C) 10%
• D) 25%

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Definitions:

Somatic Symptom Disorders

Disorders characterized by physical symptoms that cause significant distress or impairment, which are not fully explained by other medical conditions.

Somatic Symptom Disorder

A mental disorder in which a person experiences physical symptoms that cause significant distress or problems functioning, without a discernible medical cause.

Physical Symptoms

Observable or felt symptoms of an illness or condition that manifest in the body, such as pain, nausea, or fatigue.

Somatic Symptom Disorder

Somatic Symptom Disorder is a mental disorder characterized by an excessive focus on physical symptoms, such as pain or fatigue, that causes significant distress or impairment in daily functioning.