One Reason Why the Lowest Wage Rate Is Not Necessarily

question 40

Multiple Choice

One reason why the lowest wage rate is not necessarily the same as the efficiency wage is that workers might:

• A) Be more productive at a higher wage rate
• B) Have more incentive to shirk at higher wage rates
• C) Be tempted to switch jobs more frequently at higher wage rates
• D) Be less inclined to work well at a higher wage rate

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Definitions:

Unit Of Account

A standard numerical monetary unit of measurement that provides a consistent way of quoting prices and conducting economic transactions.

M1

A category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Savings Deposits

accounts held at financial institutions that allow deposits and withdrawals and are subject to modest interest rates.

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.