The theory of efficiency wages suggests that
a. above-equilibrium wages increase worker productivity.
b. workers with higher levels of education earn more than workers with lower levels of education.
c. workers signal their high ability to potential employers by completing formal years of schooling.
d. union workers earn more than nonunion workers.
a
You might also like to view...
In the figure above, international trade ________ total surplus in the United States by ________
A) increases; $1.92 billion B) decreases; $2.56 billion C) increases; $4.8 billion D) decreases; $3.6 billion
In contrast to a monopoly which misallocates resources by restricting output and producing too little, government bureaus misallocate resources by _____
a. producing too little b. producing too much c. producing the right amount but charging nothing for the output d. producing zero