Multiple Choice
One efficiency-wage theory implies that firms pay high wages because:
A) this practice increases the problem of moral hazard.
B) in wealthy countries, it is important to pay workers high wages to improve their health.
C) the more a firm pays its workers, the greater their incentive to stay with the firm.
D) paying high wages promotes adverse selection.
Correct Answer:
Verified
Correct Answer:
Verified
Q58: Short-term unemployment is most likely to be
Q59: According to efficiency-wage theories, firms benefit by
Q60: More frequent holidays for workers in Europe
Q61: Permitting a lower minimum wage for teenagers
Q62: "The unemployment rate can be reduced by
Q64: When there is structural unemployment, the real
Q65: If the economy were at a steady-state
Q66: Economists call the changes in the composition
Q67: The earned income tax credit:<br>A) increases the
Q68: Much of the difference in unemployment rates