The Theory of Efficiency Wages Provides a Possible Explanation as to Why

question 22

Multiple Choice

The theory of efficiency wages provides a possible explanation as to why

• A)workers form unions.
• B)firms should try to reduce surpluses of labor.
• C)firms may be inclined to keep their workers' wages above the equilibrium level.
• D)firms may be inclined to keep their workers' wages below the equilibrium level.

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Definitions:

Behavior

The actions or reactions of an object or organism, often in relation to its environment.

Anterior Cingulate

The front part of the cingulate, a brain structure that runs from the front to the back of the brain in the middle, just above the corpus callosum. The anterior cingulate is believed to be important for the experience of normal emotion and self-control.

Discrepancy

A difference or inconsistency between two or more elements, such as expectations versus reality.

Yellow Bile

One of the four humors in ancient Greek and Roman medicine, thought to be associated with anger and bad temper.