Three Employers Have Justified Their Actions as Follows

question 30

Multiple Choice

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

• A)Instead of spending money on an electronic timing system that monitors worker hours,Tom spends an equivalent amount of money on higher wages.
• B)Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else.
• C)Harry 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:

Push Strategy

A marketing approach that involves taking the product directly to the customer through whatever means to ensure the customer is aware of the existence of the product.

Logistics Operations

The planning, implementation, and control of the movement and storage of goods, services, or information within a supply chain.

Push-Pull Supply Chain Strategy

A hybrid supply chain model combining the push system (producing goods in anticipation of customer demand) and the pull system (producing goods in response to actual customer demand).

Inventory Costs

Expenses associated with holding and managing goods or materials until they are sold or used, including storage, insurance, and spoilage costs.