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.
Liquidity Adjustment Facility (LAF) tool in the country's monetary policy is the outcome of which Committee/Commission?
Which of the following can be defined as those that neither create any liability nor cause any reduction in the government's assets?
‘Mission Indradhanush’ launched by the Government of India pertains to?
‘SWAYAM’, an initiative of the Government of India, aims at
The upper limit for FDI in Insurance Sector is increate to ____ % from 49%.
Payment Banks in India are prohibited from performing which of the following activities?
When was the Asian Development Bank founded ?Â
Recently, 26th National Youth Festival was inaugurated in ____________.
The government has set an ambitious goal of achieving _________ of renewable energy capacity by the end of 2022.
Which of the following statements is/are true?
1. If increase in demand and supply are of equal magnitude, the price will remain unchanged, but t...
