Multiple Choice
Four employers have justified their actions as follows. Whose logic is consistent with the logic of efficiency wage theory?
A) Jay develops a new assembly line technology that limits the amount shirking workers may do, so he reduces what he pays his employees so as to make it closer to the equilibrium wage.
B) Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
C) Ray pays his workers in a developing country more than the going wage, hoping that they will get a better diet and so be more productive.
D) Ms. Fay pays her workers the market wages, but she hires more supervisors to make sure workers do not shirk.
Correct Answer:

Verified
Correct Answer:
Verified
Q177: In 2009, Canada was in a serious
Q178: About what fraction of unemployed persons have
Q179: ...
Q180: About half of all spells of unemployment
Q181: According to your text, what is NOT
Q183: In one year, you meet 40 people
Q184: What is most likely to reduce the
Q185: What will an efficient wage most likely
Q186: Over half of the unemployed are recent
Q187: How is the labour-force participation rate defined?<br>A)