The Theory of Efficiency Wages Challenges the Assumption That

question 9

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 must always adjust to balance labor supply and labor demand.
• D)firms sometimes choose to pay their workers above-equilibrium wages.

---

Definitions:

Benefit Received

The advantage or gain obtained by an individual or entity from a service, good, or action.

Public Education

A government-funded educational system that is free or low-cost for its citizens, accessible to all children and adolescents.

First-class Mail Delivery

A postal service tier that provides expedited delivery of letters and small packages.

Public Sector

The portion of an economy that is controlled by national, state, or municipal governments, encompassing services like education, healthcare, and law enforcement.