The Idea of Efficiency Wages Is That

question 10

Multiple Choice

The idea of efficiency wages is that

• A) the wages of each type of labor must be proportionate to their marginal products.
• B) the wages of each type of labor must be equal to their marginal products.
• C) firms might get greater work effort by paying above-equilibrium wage rates.
• D) workers are more diligent when paid below-equilibrium wages.

---

Definitions:

Sea Level

The average height of the ocean's surface between high and low tide, used as a standard in measuring land elevation and ocean depth.

Velocity

The rate of change of an object's position with respect to a frame of reference, showing both speed and direction of the object.

Segment

A part or section of something that is separated or distinct from the whole.

Decreases

The process or instance of becoming smaller or fewer in size, amount, intensity, or degree.