Which of the Following Is a Plausible Explanation for a Firm

question 1

Multiple Choice

Which of the following is a plausible explanation for a firm paying above-equilibrium wages to its workers?

• A)It increases the probability that a worker who shirks will be caught.
• B)It discourages workers from shirking out of fear of losing their high-paying job.
• C)The Condorcet Paradox suggests that paying high wages will result in greater effort by employees.
• D)By paying a high wage, employers solve this adverse selection problem and motivate the employees to work harder.

---

Definitions:

Birds Hitting a Plane

Incidents where birds collide with aircraft, potentially causing damage or danger to flights; also known as bird strikes.

Competencies

Skills, knowledge, and abilities that are necessary for the effective performance of a job or task.

Individual Attributes

Personal qualities or characteristics that define an individual, including traits, skills, and attitudes.

Career Experiences

The accumulation of knowledge, skills, and attitudes derived from years of working in various roles and settings.