Above-Equilibrium Wages Caused by Efficiency Wages Will Most Likely Result

question 341

Multiple Choice

Above-equilibrium wages caused by efficiency wages will most likely result in

• A)a shortage of labor.
• B)increased unemployment.
• C)compensating wage differentials.
• D)an decrease in the quantity of labor supplied.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system responsible for the body's 'fight or flight' response, regulating involuntary physiological functions.

Thalamus

The brain's relay center, directing sensory and motor signals to the cerebral cortex and the regulation of consciousness, sleep, and alertness.

Cortex

The outermost layer of the brain, involved in higher-level functions such as consciousness, thought, emotion, reasoning, language, and memory.

Two-Factor Theory

A psychological theory, proposed by Herzberg, which suggests that there are two sets of factors that influence job satisfaction: hygiene factors and motivators.