Question
Which labor market outcome is consistent with the
Efficiency Wage Theory?Solution
Efficiency Wage Theory posits that productivity (effort) is positively related to the wage paid. Firms may find it profitable to pay a wage above the market-clearing level for several reasons: · Reduced Shirking: Higher wages increase the opportunity cost of being fired, incentivizing workers to exert more effort. · Reduced Turnover: Workers are less likely to quit, saving the firm recruitment and training costs. · Improved Quality: Higher wages attract a better pool of applicants. Crucially, this can lead to involuntary unemployment because the high wage rate (set by the firm) creates a labor surplus.
- Select the most appropriate ANTONYM of the bold word.
She was very apprehensive about the results of her exam. Which of the following is an antonym of "harmful"?
That cannot be taken away
- Select the most appropriate ANTONYM of the word in bold.
Elisabeth stood at the piano, which did nothing to allay his anxiety.
... - Select the most appropriate ANTONYM of the bold word.
The detective's meticulous attention to detail was crucial in solving the case.
... - Choose the alternative which can replace the bold word without changing the meaning of the sentence.
The scientist’s perspicacity in analyzing co... Choose the word that is opposite in meaning to the given word.
Anomalous
Choose the word that means the same as the given word.
Quandary
MANDATORY
Select the word with the correct spelling.
