The idea of efficiency wages is that:
A. the wages of each type of labor must be proportionate to their marginal products.
B. the wages of each type of labor must be equal to their marginal products.
C. firms might get greater work effort by paying above-equilibrium wage rates.
D. workers are more diligent when paid below-equilibrium wages.
Answer is C. firms might get greater work effort by paying above-equilibrium wage rates.
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________ adopts the view that aggregate fluctuations are a natural consequence of an expanding economy
A) The new macroeconomics B) The Okun Gap C) Keynesian economics D) The Lucas Wedge E) Classical macroeconomics
The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained