Which of the Following Would Not Be Used by Firms

question 33

Multiple Choice

Which of the following would not be used by firms to deter shirking?

• A) requiring employees to post a bond
• B) offering a bonus after five years of service
• C) paying more than the market wage
• D) paying less than the market wage

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Definitions:

Government Payments

Funds distributed by the government to individuals, businesses, or other governmental entities, which can include subsidies, grants, or welfare payments.

Point Elasticity

A measure of how responsive the quantity demanded or supplied of a good is to a change in its price, calculated at a particular point on the demand or supply curve.

Producer Surplus

The profit producers make over and above the minimum amount they would be willing to accept for selling their goods or services.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.