Efficiency Wages Are

question 133

Multiple Choice

Efficiency wages are

• A)above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages.
• B)wage payments necessary to compensate workers for unpleasant or risky work conditions.
• C)usually less than market wages.
• D)relevant to macroeconomics because they explain rightward shifts in aggregate demand.

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Definitions:

Cash

Money in the form of currency that can be used immediately for transactions, considered the most liquid asset.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to start or operate a business.

Office Equipment

pertains to fixed, long-term assets used in an office environment for the business operations, such as computers, printers, and furniture, distinct from the broader term "equipment" by its office-specific use.

Open Account

A credit arrangement where the buyer pays the seller for goods or services at a later time, without the need for a formal loan agreement.