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Question
Using an efficiency wage theory, why do some individuals earn more than the market equilibrium wage?
a. Workers who earn more are those who are more productive.
b. Workers need to earn more to be willing to accept dangerous working conditions.
c. Workers need to earn more to be willing to accept a safe indoor job.
d. Workers who are more educated and better trained are able to earn more than the equilibrium wage.
e. Workers who earn more tend to be concentrated in a single occupation.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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a. Demand for jelly will increase along with the price.
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Q:
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