Four Employers Have Justified Their Actions as Follows

question 30

Multiple Choice

Four employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?

• A)Jay develops a new assembly line technology that limits the amount of shirking workers can do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
• B)Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
• C)Ray pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
• D)None of the above is consistent with the logic of efficiency wage theory.

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Definitions:

Trial

A formal examination of evidence by a judge, and typically a jury, in order to determine guilt or innocence in a case of law.

Moot

A term used to describe a case, argument, or problem that has become irrelevant or academic, thus not requiring a practical resolution.

Summary Judgment

A legal determination made by a court without a full trial when no material facts are in dispute, allowing for a decision on the legal issues.

Exclusive Jurisdiction

A legal authority wherein only one particular court has the power to adjudicate a case.