The Amount of Unemployment Caused by Efficiency Wages

question 24

Multiple Choice

The amount of unemployment caused by efficiency wages:

• A) has been measured by economists to be minimal.
• B) has been found to be quite large in markets that have mostly minimum-wage workers.
• C) is larger in sectors that have more less-skilled workers in them.
• D) has little conclusive evidence in economic research.

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Definitions:

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing protection from personal liability and other benefits.

Accounting Services

Professional services involving the management of financial records, including bookkeeping, auditing, and preparation of financial reports.

Automatic Novation Clause

A contractual clause wherein all parties agree to automatically substitute a new contract or contractual obligation for an old one.

Promoter

A person who organizes and operates a business venture and assumes much of the associated risk.