An efficiency wage
a. gives an employee an incentive to shirk his duties.
b. is lower than the equilibrium wage for that position and region.
c. is higher than the equilibrium wage for that position and region.
d. both a and b are correct.
c
Economics
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A good with a horizontal demand curve has a demand
A) with an income elasticity of demand equal to 0. B) with a price elasticity of demand equal to 0. C) with a price elasticity of demand equal to infinity. D) for which there are no substitutes.
Economics
Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals
A) $0. B) $1. C) $2. D) $3.
Economics