Which of the Following Is True of the Efficiency Wage

question 48

Multiple Choice

Which of the following is true of the efficiency wage model?

• A)According to the efficiency wage model, wages should increase as the productivity of workers increases with experience.
• B)According to the efficiency wage model, market wages should always be lower than the efficiency wage.
• C)In the efficiency wage model, employers pay their employees a wage equal to the equilibrium wage as a means to increase efficiency.
• D)In the efficiency wage model, employers pay their employees a wage less than the equilibrium wage to cut costs.
• E)In the efficiency wage model, employers pay their employees a wage more than the equilibrium wage as a means to increase their productivities.

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Definitions:

Subcontracting

The practice of assigning or outsourcing part of the contractual obligations or work to another party, often to specialize or expedite processes.

Seasonal Workforce

Employees hired on a temporary basis, often in industries that experience fluctuations in demand at different times of the year.

Tourism Industry

A sector of the economy that encompasses all activities related to travel and hospitality for leisure or business purposes.

Aggregate Planning

a process in operations management aimed at determining optimal production levels, inventory levels, and workforce levels, considering forecasted demand over a medium-term horizon.