Using an Efficiency Wage Theory,why Do Some Individuals Earn More

question 134

Multiple Choice

Using an efficiency wage theory,why do some individuals earn more than the market equilibrium wage?

• A) Workers who earn more are those who are more productive.
• B) Workers need to earn more to be willing to accept dangerous working conditions.
• C) Workers need to earn more to be willing to accept a safe indoor job.
• D) Workers who are more educated and better trained are able to earn more than the equilibrium wage.
• E) Workers who earn more tend to be concentrated in a single occupation.

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Definitions:

Need for Achievement

A personal drive in individuals leading them to pursue and attain challenging goals, often associated with a high level of ambition and effort to succeed.

Self-reliance

The ability to rely on one's own capabilities, resources, and judgments.

Status Quo

The existing state of affairs, particularly in terms of social or political issues.

Opportunity-driven

Entrepreneurship or actions motivated by the identification and exploitation of business opportunities.