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Suppose New Electronic Devices Make It Easier to Monitor the Effort

Question 83

Multiple Choice

Suppose new electronic devices make it easier to monitor the effort levels of workers. What happens to the NSC curve in the efficiency wage model?


A) Shifts upward
B) Shifts downward
C) Remains the same
D) The NSC curve remains the same, and the labor supply curve shifts leftward because shirking workers will leave the labor force.

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