If efficiency wage theory is valid, we would expect a relatively low premium over the reservation wage when
A) the unemployment rate is low.
B) the job requires very little training.
C) workers can be easily monitored.
D) workers have few other options for employment in the area.
E) all of the above
C
Economics
You might also like to view...
Suppose the wiz-pop market is in long-run equilibrium. Suddenly, fixed costs decrease, although variable costs remain unchanged. Discuss the short-run and long-run changes in market equilibrium.
What will be an ideal response?
Economics
The proportion of the U.S. population below the poverty line
A. rises with upturns of the business cycle. B. has declined, though somewhat erratically, over the past 40 years. C. has been virtually eliminated by a vigorous "War on Poverty." D. covers roughly 20% of the same people year after year.
Economics