One reason that an efficiency wage leads to greater worker productivity is that:
A. it is set right at market equilibrium which creates an efficient labor market.
B. earning more than the market wage gives workers an incentive to stay with the firm.
C. it deters workers from trying to start a union.
D. due to competition for their jobs, which are now desired, firms to pay less overall for a worker in the long run.
Answer: B
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Economic agents who borrow funds are known as:
A) receivers. B) debtors. C) investors. D) creditors.
Refer to the scenario above. The opportunity cost per dollar of value added in the production of Good X by worker 1 is ________
A) $0.50 of value added in the production of Good Y B) $100 of value added in the production of Good Y C) $87.50 of value added in the production of Good Y D) $0.70 of value added in the production of Good Y
Everything else held constant, a decrease in net exports ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
In assessing the difference between monopoly performance and that of perfect competition, the best approach is to
A. measure the output of the monopolist and the output of the perfectly competitive firm. B. measure the output of the monopolist and the output of the perfectly competitive industry. C. measure the output purchased by consumers from the monopolist and from the perfectly competitive firm. D. calculate the marginal cost of the monopolist and of the perfectly competitive firm.