According to the Theory of Efficiency Wages,if a Firm Stops

question 36

Multiple Choice

According to the theory of efficiency wages,if a firm stops paying efficiency wages it is likely to see a(n)

• A)increase in the number of job applicants and an increase in how long workers stay on the job.
• B)increase in the number of job applicants and a decrease in how long workers stay on the job.
• C)decrease in the number of job applicants and an increase in how long workers stay on the job.
• D)decrease in the number of job applicants and a decrease in how long workers stay on the job.

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Definitions:

Bailee

The person acquiring possession of personal property in a bailment.

Gratuitous Bailment

A situation where property is voluntarily transferred into another's custody without expectation of payment.

Stradivarius

A type of high-quality stringed instrument made by members of the Stradivari family, particularly renowned violins.

Bailor

The party in a bailment who temporarily transfers possession but not ownership of a property to another party, the bailee.