Asked by Oscar Zamora on Jul 22, 2024
Verified
Efficiency wages
A) increase productivity and reduce unemployment.
B) increase productivity but increase unemployment.
C) decrease productivity but reduce unemployment.
D) decrease productivity and increase unemployment.
Efficiency Wages
Wages intentionally set above the equilibrium level by employers to increase productivity, discourage turnover, and attract better talent.
Increase Productivity
Enhancing the efficiency of production processes, resulting in more output from the same amount of inputs.
Increase Unemployment
A scenario where the number of unemployed individuals in the workforce rises, which can result from various factors including economic downturns, technological changes, or regulatory actions.
- Gain insight into the theory and consequences of efficiency wages in the context of employment and productivity.
Verified Answer
Learning Objectives
- Gain insight into the theory and consequences of efficiency wages in the context of employment and productivity.
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