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:

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for goods until they are delivered to the buyer’s location, at which point the buyer takes ownership.

Sale Recorded

The process of documenting a sale transaction in the financial books of a company, recognizing revenue.

Deposits in Transit

Funds that have been received and recorded by a company but not yet by its bank.

Bank Reconciliation

Process of verifying the accuracy of both the bank statement and the cash accounts of a business.