How does the theory of efficiency wages explain above-equilibrium wages?
a. Employers are forced by competition to pay higher wages in efficient markets.
b. Employers give their workers a higher wage in the hope that it will lead to increased productivity.
c. Workers get higher wages when they prove they are increasing their productivity.
d. Workers demand higher wages to compensate for poor fringe benefits.
b
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A price floor is considered
A) "fair" based only on the fair results view. B) "fair" based only on the fair rules view. C) "unfair" based on both the fair results and fair rules views. D) "unfair" based only on the fair results view. E) "fair" based on the fair results view and on the fair rules view.
Gross domestic product includes
a. all intermediate and final goods and services produced. b. the current production of final goods and services with a country's borders. c. exchanges of assets. d. the current production of final goods and services by a country's citizens. e. All of the above
Which of these is a lagging economic indicator?
a. The unemployment rate b. Personal income c. Industrial production d. Total employment e. Fluctuations in stock prices
A tariff on shoes would lead to: a. a higher price for shoes for domestic consumers
b. greater sales of shoes at higher prices for domestic producers. c. lower sales of foreign shoes. d. all of the above