The Theory of Efficiency Wages Challenges the Assumption That

question 179

Multiple Choice

The theory of efficiency wages challenges the assumption that

• A) workers are efficient.
• B) workers have an incentive to shirk their responsibilities to their employers.
• C) wages adjust to balance labor supply and labor demand.
• D) firms sometimes choose to pay their workers above-equilibrium wages.

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Definitions:

Posterior Chambers

The space filled with aqueous humor found between the iris and the lens within the eye.

Anterior Chambers

The fluid-filled space between the cornea and the iris in the eye, through which light passes to reach the lens.

Ciliary Body

A structure in the eye composed of ciliary muscle and ciliary processes, involved in the production of aqueous humor and adjustment of the lens for focusing.

Pupil

The opening in the center of the iris of the eye that allows light to enter the retina.