Asked by
Raymond Soriño
on Oct 25, 2024
Verified
The efficiency wage is:
A) lower than the market-clearing wage, to penalize shirking.
B) higher than the market-clearing wage, to penalize shirking.
C) lower than the market-clearing wage, to allow managers the resources to monitor shirking.
D) higher than the market-clearing wage, to reward workers for informing on others who shirk.
E) lower than the market-clearing wage, because of shirking done by managers.
Market-clearing Wage
The wage rate at which the quantity of labor supplied is equal to the quantity of labor demanded.
Efficiency Wage
A higher-than-market wage that a firm pays to increase worker productivity and reduce turnover.
Penalize Shirking
Involves imposing consequences on employees or agents who reduce their effort or productivity, often seen in economic models of labor markets.
- Identify the differences between wages that balance market supply and demand and those that enhance worker efficiency.
- Determine the factors that influence organizations to offer wages above market level for increased productivity.
Verified Answer
AV
Learning Objectives
- Identify the differences between wages that balance market supply and demand and those that enhance worker efficiency.
- Determine the factors that influence organizations to offer wages above market level for increased productivity.
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