Which of the Following Research Findings Would Support an Efficiency

question 26

Multiple Choice

Which of the following research findings would support an efficiency wage explanation of pay differentials?

• A)Firms with higher turnover costs pay lower than average wages
• B)Firms with higher costs of detecting shirking pay higher than average wages
• C)Pay is positively correlated with human capital investments in a given industry
• D)Differences in observable worker characteristics explain most of the variance in pay across industries

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Definitions:

Catalytic Cracking

A chemical process used in petroleum refineries to break down large, heavy hydrocarbon molecules into smaller, more useful ones, often utilizing a catalyst.

Line-Angle Structures

Simplified structural representations of molecules in organic chemistry using lines to represent chemical bonds and vertices to represent carbon atoms.

Hydrogenation

The chemical reaction of adding hydrogen to an organic compound, often used to convert unsaturated bonds to saturated ones.

Cyclobutene

A cyclic hydrocarbon molecule consisting of a ring of four carbon atoms connected by double and single bonds.