Mary Sue is the newly appointed CEO of a company that manufactures CD drives on an assembly line.Her staff has told her that the output the firm produces,given the number of workers employed,indicates that some workers may be shirking.According to efficiency wage theory,what should she do?
A) pay all workers more than the equilibrium wage rate
B) pay all workers below the equilibrium wage rate to make up for the loss from shirking
C) make sure that workers are getting paid exactly the equilibrium wage rate
D) None of the above is correct according to efficiency wage theory.
Correct Answer:
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A)creates frictional unemployment.Efficiency wages create
Q200: Unions
A)do not increase the natural rate of
Q201: Over one-half of the unemployed are recent
Q202: The unemployment rate reported by the BLS
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A)setting
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