In the efficiency wage model, if the real wage is higher than the market-clearing wage so that there is an excess supply of labor
A) firms will hire new workers at lower wages.
B) firms will replace high-paid workers with low-paid, formerly unemployed workers.
C) employers will not hire workers who are willing to work for a lower wage.
D) firms will demand a higher level of effort from existing employees.
C
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C)
If the price of motorcycle side cars (a complement to motorcycles) decreases, and the wages of motorcycle workers increase, how will the equilibrium point change? A) The equilibrium point will move from C to E. B) The equilibrium point will move from C to B. C) The equilibrium will first move from C to A, then return to C. D) The equilibrium point will move from C to A.
Which one of these statements is always true?
a. Actual investment is equal to intended investment. b. Actual investment is equal to saving. c. Actual investment is equal to consumption. d. Intended investment is equal to saving. e. Intended investment is equal to consumption.