Efficiency Wages Are

question 105

Multiple Choice

Efficiency wages are:

• A) wages deliberately set above the market rate in order to increase productivity.
• B) not a cause of unemployment.
• C) generally a disincentive for an employee to work hard to try to keep their job.
• D) All of these are true.

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Definitions:

Voter Identification

Laws or measures requiring individuals to present specified forms of identification in order to vote, aimed at preventing voter fraud.

Positive Economics

An area of economics that focuses on factual and cause-and-effect relationships, avoiding any value judgments.

Labor Economics

A branch of economics that studies the dynamics of the markets for wage labor, including demand and supply, wage determination, and labor productivity.

Normative Economics

A branch of economics that focuses on what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal.