According to Efficiency Wage Models,labor Productivity Depends on

question 132

Multiple Choice

According to efficiency wage models,labor productivity depends on

• A) the number of employees at a firm; the smaller the number of employees,the more productive each employee is.
• B) the amount of capital that employees have to work with.
• C) the wage rate the firm pays its employees; a cut in wages can cause labor productivity to decline.
• D) whether or not the economy is currently producing Natural Real GDP.
• E) none of the above

---

Definitions:

Progressive

A tax system where the tax rate increases as the taxable amount increases, often aimed at achieving a more equitable distribution of income.

Proportional

A relationship where two quantities increase or decrease at the same rate, maintaining a constant ratio.

Regressive

Refers to a tax system where the tax rate decreases as the taxable amount increases, often placing a higher burden on lower-income earners.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare among entities, determining who ultimately bears the cost of the tax.