« previous next »

Author Question: What is an efficiency wage and what effect does it have in the labor market? What will be an ... (Read 51 times)

nenivikky

  • Hero Member
  • *****
  • Posts: 516
on: Jun 29, 2018
What is an efficiency wage and what effect does it have in the labor market?
 
  What will be an ideal response?

Question 2

Economic growth is slow or absent in some economies because those lack
 
  A) political freedom.
  B) democracy.
  C) a strong government.
  D) cultural freedom.
  E) economic freedom.


Hdosisshsbshs

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jun 29, 2018
Answer to Question 1

An efficiency wage rate is a wage that is set by a firm above the equilibrium wage rate in order to motivate the firm's workers to work hard. The idea is that workers will work hard in order to keep their jobs because they know that if they are fired the (equilibrium) wage rate they are likely to get at a new job will be less than the efficiency wage. An efficiency wage is one of the factors that push the wage rate above its equilibrium and thereby create unemployment.

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

nenivikky

  • Hero Member
  • *****
  • Posts: 516
Reply #2 on: Jun 29, 2018
Thank you :)


Hdosisshsbshs

  • Sr. Member
  • ****
  • Posts: 315
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Drugs and their effect table Drugs and their effect table
The Effect of Group Size on Relationships The Effect of Group Size on Relationships
Effect of a catalyst on activation energy Effect of a catalyst on activation energy
Effect of cooperative substrate binding on enzyme kinetics Effect of cooperative substrate binding on enzyme kinetics
Effect of an Increase in gA,2 on Productivity and Output Effect of an Increase in gA,2 on Productivity and Output
Cocaine’s Effect on the Brain Cocaine’s Effect on the Brain
Video: Properties of water -structure of water and polarity (Ionized and polar compounds)

For a complete list of videos, visit our video library