The Efficiency-Wage Theory of Worker Turnover Suggests That Firms with Higher

question 26

Multiple Choice

The efficiency-wage theory of worker turnover suggests that firms with higher turnover will have

• A)higher production costs and higher profits.
• B)higher production costs and lower profits.
• C)lower production costs and higher profits.
• D)lower production costs and lower profits.

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Definitions:

Strikes

A work stoppage caused by the mass refusal of employees to work, typically to protest against terms of employment or working conditions.

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.

Economic Disruptions

Events or activities that cause significant changes or interruptions to the normal flow of economic activity.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.