According to the Theory of Efficiency Wages, If a Firm

question 276

Multiple Choice

According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see

• A)an increase in the number of job applicants and an increase in how long workers stay on the job
• B)an increase in the number of job applicants and a decrease in how long workers stay on the job
• C)a decrease in the number of job applicants and an increase in how long workers stay on the job
• D)a decrease in the number of job applicants and a decrease in how long workers stay on the job

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Definitions:

Disclosure

The act of making new or significant information known, particularly in legal and corporate contexts, where transparency is required by law or policy.

Principal

The main party to a transaction, obligation, or financial instrument, in contrast to an agent or intermediary.

Third Party

An individual or group besides the two primarily involved in a transaction or legal case.

Undisclosed Principal

A party in a contract whose identity is not revealed to the third party by the agent, allowing the principal to conduct transactions anonymously.