If Efficiency Wages Became More Common

question 139

Multiple Choice

If efficiency wages became more common,

• A)both the long-run Phillips curve and the long-run aggregate supply curve would shift right.
• B)both the long-run Phillips curve and the long-run aggregate supply curve would shift left.
• C)the long-run Phillips curve would shift right,and the long-run aggregate supply curve would shift left.
• D)the long-run Phillips curve would shift left,and the long-run aggregate supply curve would shift right.

---

Definitions:

Risk Averse

A description of an individual or entity that prefers to avoid risk or chooses lower risk options when faced with uncertainty, often prioritizing security over potential higher returns.

Utility Function

A mathematical representation describing how consumers rank different bundles of goods based on the level of satisfaction they provide.

Marginal Utility

The extra pleasure or benefit derived from the consumption or utilization of an additional unit of a product or service.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a good or service.