What Theory Would Suggest That an Employee Should Receive a Wage

question 127

Multiple Choice

What theory would suggest that an employee should receive a wage higher than the equilibrium wage rate?

• A) efficiency wage
• B) in-kind transfers
• C) occupational crowding
• D) samaritan's dilemma
• E) binding arbitration

---

Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not intended to be sold within a year.

Average Collection Period

The average number of days it takes for a company to collect payments from its credit sales.

Collection Policy

The procedures and guidelines used by a company to monitor and manage the collection of debts owed to it.

Questionable Receivables

Accounts receivable that might not be collected due to issues like customer disputes or financial instability.