Michael Decides to Hire Some Additional Workers for His Roofing

question 31

Multiple Choice

Michael decides to hire some additional workers for his roofing company.The equilibrium wage is $17 per hour.Efficiency wage theory suggests that it is reasonable for Michael to offer

• A)$17 per hour.
• B)less than $17 per hour because some people would be willing to work for less.
• C)less than $17 an hour to prevent shirking.
• D)more than $17 per hour in order to attract a better pool of applicants.

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Definitions:

Shame

A painful emotional response stemming from the belief of inadequacy or wrongness about oneself.

Commentary

An expression of opinions or explanations about an event or situation, often provided in written or spoken form.

Identical Twin

A twin developed from a single fertilized ovum, sharing the same genetic material and often exhibiting very similar physical characteristics.

Fraternal Twin

Siblings born at the same time who are the result of the fertilization of two different eggs by two different sperm, making them genetically as similar as non-twin siblings.