Which of the Following Is Not a Potential Reason for Offering

question 40

Multiple Choice

Which of the following is not a potential reason for offering a wage above the market wage?

• A) A higher wage contributes to improved worker health.
• B) A higher wage makes the opportunity cost of losing a job higher, thus reducing "shirking."
• C) It reduces moral hazard.
• D) Higher wages attract more productive workers.
• E) Higher wages signal prestige and thus attract workers from elite schools.

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Definitions:

Condition Subsequent

A condition in a contract that, if it occurs, can end the contract or modify its terms after the contract has been executed.

Sale Or Return

A commercial arrangement where goods are provided to a buyer or reseller who has the option to return unsold items within a specified period instead of purchasing them.

Accord And Satisfaction

A legal agreement between parties to settle a dispute by agreeing on a payment that is different from the original obligation.

Novation

The process of replacing an obligation to perform with a new obligation or substituting a new party to an agreement.