Which of the Following Is a Plausible Explanation for a Firm

question 1

Multiple Choice

Which of the following is a plausible explanation for a firm paying above-equilibrium wages to its workers?

• A)It increases the probability that a worker who shirks will be caught.
• B)It discourages workers from shirking out of fear of losing their high-paying job.
• C)The Condorcet Paradox suggests that paying high wages will result in greater effort by employees.
• D)By paying a high wage, employers solve this adverse selection problem and motivate the employees to work harder.

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Definitions:

Methamphetamine

Methamphetamine is a powerful, highly addictive stimulant that affects the central nervous system, known for its use both as a recreational drug and, less commonly, for its therapeutic use in certain medical conditions.

Moderately Intoxicated

A state of inebriation where an individual's cognitive, motor, and perceptual abilities are notably impaired, but not to the extreme.

Alcohol

A chemical substance found in beverages such as beer, wine, and spirits, known to alter consciousness and affect bodily functions.

Behavior

The actions or reactions of an individual, usually in relation to the environment or context.