Which One of the Following Is Not Typically Offered as an Explanation

question 26

Multiple Choice

Which one of the following is not typically offered as an explanation for efficiency wages?

• A)An employer will not pay a wage that exceeds the market rate
• B)A higher wage may reduce turnover
• C)A higher wage may allow lower income workers to afford better nutrition that increases their stamina
• D)The higher wage may be perceived by workers as raising the opportunity cost of shirking

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis, a management accounting methodology used for understanding the relationship between costs, volumes of sales, and profit.

Variable Cost

Costs that vary in proportion to the level of activity or volume of production in a business.

Annual Fixed Costs

Expenses that a business incurs that do not fluctuate with changes in production level or sales volume, such as rent or salaries, benchmarked on a yearly basis.

Graphical Approach

A method of solving problems or representing data using charts, graphs, or diagrams.