Which of the following statements about efficiency wage theory is true ?

A. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities
B. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law
C. Paying the lowest possible wage is always the most efficient (Profitable)
D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort

Related Mcqs:

Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?
A. Structural unemployment
B. Cyclical Unemployment
C. Frictional Unemployment
D. None of these answers
E. Sectoral Unemployment
If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
A. There will be equilibrium in the labour market
B. There will excess demand in the labour market
C. There will be excess supply in the labour market
D. More people will be employed
If, for any reason the wage is held above the competitive equilibrium wage?
A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
B. Unions will likely Strike and the wage will fall to equilibrium
C. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
D. The quality of workers in the applicant pool will tend to fall
The term ‘real wage’ means the money wage” ?
A. after tax
B. allowing for change in prices.
C. Plus, benefits in kind
D. plus, overtime payments.
Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?
A. sticky-wage theory of the short-run aggregate supply curve
B. classical dichotomy theory of the short-run aggregate supply curve
C. misperceptions theory of the short-run aggregate supply curve
D. sticky-price theory of the short run aggregate supply curve
The government increase the minimum wage. The National Association of Fast Food Restaurants hires you to determine the impact that this higher minimum wage will have on it industry. This is an example of ?
A. industry equilibrium analysis
B. specific equilibrium analysis
C. partial equilibrium analysis
D. general equilibrium analysis
he efficiency wage is the ?
A. wage costs per unit of output
B. wage rate that prevails in LDCs
C. Wage rate divided by the productivity of labor
D. marginal product of labor divided by wage
Which of the following explanations of wage differentials is not likely to be true ?
A. Men have more human capital than women
B. Employers in competitive markets are bigots
C. Men have more job experience than women
D. None of the above
Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
A. Unemployment due to unions
B. Unemployment due to efficiency wages
C. Frictional Unemployment
D. Unemployment due to minimum-wage laws
All of the following would tend to increase a worker’s wage except ?
A. Working the night shift
B. working harder
C. more education
D. having a greater amount of natural ability
E. doing a job that is fun