An Efficiency Wage Is

question 218

Multiple Choice

An efficiency wage is:

• A) above the equilibrium wage and is paid to provide workers with an incentive increase productivity.
• B) efficient because it is exactly equal to the wage rate implied by the marginal productivity theory.
• C) determined by collective bargaining between unions and management.
• D) equal to the value of the marginal product of labor adjusted so as to make the structure of compensation more equitable.

---

Definitions:

Self-fulfillment

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Humanist

An individual who emphasizes the value and agency of human beings, individually and collectively, often focusing on human needs and concerns.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation.

Exposure Techniques

Therapeutic methods used to treat fears and phobias by gradually exposing patients to the feared object or context without any danger.