One Reason That an Efficiency Wage Leads to Greater Worker

question 72

Multiple Choice

One reason that an efficiency wage leads to greater worker productivity is that:

• A) earning more than the market wage gives workers an incentive to stay with the firm.
• B) it deters workers from trying to start a union.
• C) due to competition for their jobs, which are now desired, firms to pay less overall for a worker in the long run.
• D) it is set right at market equilibrium which creates an efficient labor market.

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Definitions:

Scientific Influence

The impact or effect that scientific research and discoveries have on the development of knowledge, technology, societal norms, and policies.

Limbic System

A complex system of nerves and networks in the brain, involved in instinct and mood control, as well as the processing of emotions and memories.

Frontal Lobe

The Frontal Lobe is a section of the brain positioned at the front of the cerebral cortex, crucial for executive functions, decision-making, movement, and speech.

Temporal Lobe

A region of the cerebral cortex located in the lower part of the brain, responsible for processing auditory information and encoding memory.