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Joe's entire neighborhood was hit by a forest fire last year. While nearly all of the houses in the neighborhood were burnt to a crisp, Joe's house was miraculously spared and left fully intact. If Joe was like most people, he would nonetheless feel very badly that he came out of the fire alright while others suffered so much. That is, he would be feeling a form of ____.
Nonunionized
Workplaces or employees that are not part of a labor union and do not engage in collective bargaining.
Efficiency Wages
Wages that are deliberately set above the market equilibrium level by employers to increase productivity and efficiency among employees.
Below-equilibrium
A situation where the quantity demanded exceeds the quantity supplied at a given price.
Principal-agent Problem
A dilemma in which one party (the agent) is expected to act in the best interest of another party (the principal) but may have the incentive to act in their own interest instead.
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