Sarah is the CEO of a corporation that hires nonunion labor.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,
A) the profits of her firm might increase.
B) the higher wages will induce her workers to shirk.
C) the turnover of her workers may increase.
D) she will face a shortage of labor.
Correct Answer:
Verified
Q17: Efficiency wages
A)increase frictional unemployment by keeping wages
Q36: A firm may pay efficiency wages in
Q182: When employers pay efficiency wages,they pay wages
A)below
Q184: Which of the following is correct?
A)Minimum-wage laws
Q186: Arnnie is the owner of a firm
Q187: Efficiency wages
A)offset the effects of unions on
Q188: Samantha,the CEO of a corporation operating in
Q189: An efficient wage
A)requires increased turnover.
B)may decrease the
Q190: Which of the following is correct?
A)All economists
Q497: When unions raise wages in some sectors
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents