An Efficiency Wage Is

question 30

Multiple Choice

An efficiency wage is:

• A) above the equilibrium wage and is paid to provide workers with an incentive to 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 labour adjusted so as to make the structure of compensation more equitable.

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Definitions:

Hold-Back

The retention of a part of the contract price by the owner as required under construction lien legislation to ensure payment of subcontractors and suppliers of materials.

Suppliers Of Goods And Services

Entities or individuals that provide the market with products or perform tasks as a business.

Property Owner

The individual or entity that holds legal title to or ownership of a property, including real estate or personal property.

Project

An individual or collaborative enterprise, often involving research or design, that is carefully planned to achieve a specific aim.