Which Theory in Labor Economics Holds That Unless an Employee

question 28

Multiple Choice

Which theory in labor economics holds that unless an employee can produce a value equal to the value received in wages,it will not be worthwhile to hire that worker?

• A) Theory of value
• B) Credibility theory
• C) Tournament theory
• D) Marginal revenue theory

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Definitions:

European Union

A political and economic union of member states that are located primarily in Europe, fostering regional integration.

Sequential Game

A type of game in game theory where players make decisions one after another, rather than simultaneously, allowing for a strategic consideration of the previous actions.

Battle of the Sexes

A game theory model illustrating coordination problems through the preferences of two individuals trying to agree on a common decision with conflicting interests.

Maximin Strategies

Decision-making strategies aimed at maximizing the minimum payoff attainable, commonly used in games and economic scenarios where uncertainty is a significant factor.