Explain why some economists believe an efficiency wage serves to make a business more profitable.
What will be an ideal response?
Answers to this question will vary but should explain the premise of the efficiency
wage model, that an efficiency wage attracts the most productive workers, reduces job
turnovers, and improves morale. Higher morale can lead to lower hiring and training
costs. In addition, higher-paid workers may be healthier and therefore more productive.
Higher output and lower expenses will result in increased profits for a company.
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The table above has the domestic demand and domestic supply schedules for a good. If the world price of the good is $10 and international trade occurs, then according to the table
A) domestic production is higher before trade than after trade. B) the country imports 16 units a day. C) the country imports 6 units a day. D) the country exports 6 units a day. E) the country exports 22 units a day.
The interest rate at which international banks loan to each other is called
A) LIBOR B) federal funds rate C) prime rate D) international bank lending rate
The marginal propensity to consume (MPC) is typically
a. less than zero or greater than 1.0 b. equal to zero c. equal to 1.0 d. between -1.0 and 1.0 e. between zero and 1.0
Programs that reduce the incentive to work make income redistribution inefficient
a. True b. False Indicate whether the statement is true or false