Suppose That Efficiency Wages Become More Common in the Economy

question 197

Multiple Choice

Suppose that efficiency wages become more common in the economy.Economists would predict that this would

• A) increase the quantity demanded and decrease the quantity supplied of labor,thereby decreasing the natural rate of unemployment.
• B) decrease the quantity demanded and increase the quantity supplied of labor,thereby increasing the natural rate of unemployment.
• C) increase the quantity demanded and decrease the quantity supplied of labor,thereby increasing the natural rate of unemployment.
• D) decrease the quantity demanded and increase the quantity supplied of labor,thereby decreasing the natural rate of unemployment.

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Definitions:

Antecedent

Anything that occurs before a behavior that may trigger or cause a certain behavior to occur, often used in the analysis of behavior patterns.

Consequence

The result or effect of an action or condition, often seen in terms of how it affects an earlier event.

Enhancement

Refers to the improvement or intensification of qualities, performance, or characteristics, often through the use of technological, chemical, or psychological means.

Correlation

A numerical indicator showing how much two or more variables move in relation to each other.