If All Employers Pay an Efficiency Wage and If Workers

question 9

Multiple Choice

If all employers pay an efficiency wage and if workers in areas with low unemployment rates can easily find alternative jobs,then one would expect

• A) average wages to be directly (positively) related to area unemployment rates.
• B) average wages times one minus the unemployment rate to be the same across areas.
• C) the duration of unemployment in an area, but not necessarily the rate, to be inversely related to the average wage of the area.
• D) average wages will be higher in areas with low unemployment rates.

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Definitions:

Strategic Choices

Decisions made by an organization that affect its ability to achieve objectives and gain competitive advantage.

Technological Factors

Elements related to innovations, advancements, or changes in technology that can impact businesses and societies.

Organization Design

involves structuring the organizational framework to effectively and efficiently achieve business goals and adapt to changes.

Environment Nature

The natural, physical, and biological aspects of an environment, including landscapes, water, plants, and animals, and their interrelationships.