Four Employers Have Justified Their Actions as Follows

question 30

Multiple Choice

Four employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

• A)Jay develops a new assembly line technology that limits the amount of shirking workers can do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
• B)Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
• C)Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
• D)None of the above is consistent with the logic of efficiency wage theory.

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Definitions:

Stressors

Elements or circumstances that cause stress or tension in individuals, potentially leading to negative health or psychological outcomes.

Adaptive Factors

Elements that allow organisms or systems to adjust to changes in their environment, enhancing their survival or efficiency.

Demand Characteristics

Cues in an experiment that suggest to participants what behavior is expected of them, potentially influencing the outcomes of the study.

External Locus

is a worldview that ascribes control over one's life events and outcomes to external factors and forces beyond one's personal control.