-According to the Above Table, at a Price of $1

question 112

Multiple Choice

-According to the above table, at a price of $1 per unit, which of the following would exist?

• A) a shortage of 800 units
• B) a surplus of 800 units
• C) a surplus of 200 units
• D) a shortage of 200 units

---

Definitions:

Efficiency Wage

A wage rate set above the market equilibrium to increase productivity and efficiency among workers by attracting and retaining higher-quality employees.

Above-Equilibrium Wage

A situation where wages for a job exceed the market equilibrium, often due to minimum wage laws, unions, or other factors, potentially causing a surplus of applicants.

Talented Pool

A collective term referring to a group of individuals who possess high levels of skill, expertise, or ability in specific areas.

Efficiency Wages

Wages intentionally set above the equilibrium level by employers to increase productivity, discourage turnover, and attract better talent.