Which of the Following Is Not a Reason That Paying

question 443

Multiple Choice

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

• A) Efficiency wages increase worker health and therefore increase worker productivity.
• B) Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
• C) Efficiency wages decrease worker shirking and therefore increase worker productivity.
• D) Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.

Uninsured Savings

Savings not protected by government insurance, exposing depositors to potential loss if the financial institution fails.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by central banking authorities.

Commercial Banks

Financial institutions that provide a range of services, including accepting deposits, providing loans, and offering other financial products.