The Efficiency-Wage Theory of Worker Quality Suggests That If Firms

question 148

Multiple Choice

The efficiency-wage theory of worker quality suggests that if firms respond to a surplus of labor by reducing the wage, then highly qualified workers will be

• A)more likely to apply, and unemployment will increase.
• B)more likely to apply, and unemployment will decrease
• C)less likely to apply, and unemployment will Increase.
• D)less likely to apply, and unemployment will increase.

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Definitions:

Clearing Your Mind

The process of removing distractions and worries to focus better or relax.

Looking for Flaws

The act of critically examining something to identify mistakes or weaknesses.

Understand Messages

The process by which an individual comprehends the meaning and intent of communicated information.

Eliminate Conflict

The process of resolving disagreements or disputes to achieve harmony in a relationship or environment.