A likely consequence of firms paying "efficiency wages" is
A) decreased unemployment.
B) increased unemployment.
C) lower real wages for employed workers.
D) more competitive labour markets.
E) rapid wage adjustment in the face of labour-market changes.
Correct Answer:
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Q45: The labour market in the diagram below
Q46: Wage contracts are often set for periods
Q49: Long-term labour contracts are an important feature
Q50: The theory of "efficiency wages" suggests that
Q51: The labour market in the diagram below
Q52: "Efficiency wages" are said to exist when
Q52: A central argument of non-market-clearing theories of
Q58: The theory of "efficiency wages" provides
A)a way
Q59: Non-market-clearing theories of the labour market feature
Q60: Involuntary unemployment in a labour market is
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