Wage Output per Worker $10 20 9 20 8 16 7 10 42. If the actual wage is $7, the w

Question

Wage Output per Worker

$10 20

9 20

8 16

7 10

42. If the actual wage is $7, the wage cost per effective unit of labor is:

a. $3.50 c. $7.00 b. $10.00 d. $14.00

43. This firm’s efficiency wage rate is:

a. $7.00 b. $8.00 c. $9.00 d. $10.00

44. According to efficiency wage models, the firm’s profits will increase whenever the wage causes:

a. worker productivity to increase by a larger proportion than the wage increase

b. worker productivity to increase

c. worker turnover to fall

d. worker nutrition to increase

45. One implication of efficiency wage models is that:

a. firms pay wages below the market-clearing rate

b. an excess supply of labor may be created

c. an excess demand for labor may be created

d. CEO contracts will contain golden parachute clauses

46. Which one of the following is not typically offered as an explanation for efficiency wages?

a. An employer will not pay a wage that exceeds the market rate

b. A higher wage may reduce turnover

c. A higher wage may allow lower income workers to afford better nutrition that increases their stamina

d. The higher wage may be perceived by workers as raising the opportunity cost of shirking

47. Efficiency wage models are often criticized because:

a. other pay-for-performance plans could serve as a substitute for an efficiency wage

b. employees could be required to post a forfeitable bond instead

c. shirking could be reduced by deferred compensation plans

d. all of the above

48. Labor market efficiency requires that each worker be allocated to:

a. the job offering the highest wage available

b. the job offering the best fringe benefits available

c. his or her optimal job

d. his or her optimal job, and that each firm implements its optimal compensation package

Explanation / Answer

Answers :-

42. d. $14.00

43. c. $9.00

44. a. a. worker productivity to increase by a larger proportion than the wage increase.

45. b. an excess supply of labor may be created.

46. a. An employer will not pay a wage that exceeds the market rate.

47. d. all of the above

48. d. his or her optimal job, and that each firm implements its optimal compensation package.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.