An efficiency wage is defined as
A. any wage scheme that is accepted by the union.
B. a wage above the competitive wage that elicits greater effort on the part of workers.
C. any wage scheme that pays all workers the same wage.
D. a wage below the competitive wage that elicits greater effort on the part of the workers.
E. any wage scheme that pays different workers different wages.
Answer: B
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Efficiency can correctly be defined as
A) producing outside the production possibilities boundary. B) minimizing opportunity cost. C) producing the maximum output with given technology and resources. D) providing for the immediate needs of the greatest proportion of the population.
The change in total revenue due to one unit change in labor usage is called marginal revenue
Indicate whether the statement is true or false