Efficiency Wage Models Are Often Criticized Because

question 46

Multiple Choice

Efficiency wage models are often criticized because:

• A)other pay-for-performance plans could serve as a substitute for an efficiency wage
• B)employees could be required to post a forfeitable bond instead
• C)shirking could be reduced by deferred compensation plans
• D)all of the above

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Definitions:

Trade Union

An organization of workers designed to facilitate collective bargaining with employers over wages, work conditions, and benefits.

Human Relations

Interactions and relationships between people, especially in the workplace, emphasizing communication and cooperation.

Primary Labour Market

Refers to sectors of the economy offering high-quality, secure jobs with good pay, benefits, and opportunities for advancement.

Secondary Labour Market

A segment of the labor market characterized by low-paying, insecure jobs, and often with limited opportunities for advancement.