Which of the Following Defines an Efficiency Wage

question 38

Multiple Choice

Which of the following defines an efficiency wage?

• A)It is the equilibrium wage rate in the labor market where the demand for labor exactly matches the supply of labor.
• B)It is an above-market wage which increases the firms' profits by increasing the productivity of all factors of production.
• C)It is an above-market wage which increases the firms' profits by lowering the costs of searching for,selecting,and training new workers.
• D)It is a below-market wage which increases the employment opportunities in an economy and reduces overall poverty.

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Definitions:

Subjective Norms

Individual's perceptions of social pressure to perform or not perform a particular behavior, influenced by family, friends, and society.

Theory Of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that an individual's behavioral intentions are shaped by their attitudes towards the behavior, subjective norms, and perceived control over the behavior.

Intention To Act

A mental state that represents a commitment to carrying out an action or actions in the future.

Subjective Norms

Beliefs about the social pressures to perform or not perform a particular behavior, which can influence an individual's actions.