Dan Decides to Hire Some Additional Workers for His Golf

question 167

Multiple Choice

Dan decides to hire some additional workers for his golf cart factory.The equilibrium wage is $15 per hour.What does efficiency wage theory suggest is a reasonable wage for Dan to offer?

• A) $15 per hour
• B) less than $15 per hour,since some people would be willing to work for less
• C) enough to attract the number of applicants necessary to fill the jobs available
• D) more than $15 per hour,so as to attract a better pool of applicants

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Definitions:

EVA

Economic Value Added is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.

Market-Based Income

Income generated from investments in the financial markets, such as stocks, bonds, or other assets.