5. The theory of efficiency wages Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply. O Higher wages attract a more competent pool of workers. O Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. O Paying higher wages tends to reduce the average experience level of a firm's workers. O Paying higher wages encourages workers to be more productive.

5. The theory of efficiency wages Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply. O Higher wages attract a more competent pool of workers. O Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. O Paying higher wages tends to reduce the average experience level of a firm's workers. O Paying higher wages encourages workers to be more productive.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Labor market definitions The market labor demand curve Is: The graphical representation of the relationship between the wage rate and the quantity of labor supplied In a market The additional revenue the firm receives from selling the output produced using an additional unit of labor The graphical representation of the relationship between the wage rate and the quantity of labor demanded in a market O The increase in the amount of output from an additional unit of capital Which of the following events may shift the market labor demand curve rightward? Check al that apply. OA decrease in the wage rate OA technical change that increases the marginal value product of labor O An Increase in the output price U A decrease in the output price LG
13. Identify which way the labor supply curve would shift under the following scenarios. A country experiences a huge influx of immigrants who are skilled in the textile industry. Wages increase in an industry that requires similar job skills. New machines require additional maintenance over time, so that the marginal productivity of labor rises.
21.
2. Which one of the following is not an example of efficiency wages? Group of answer choices a) Firms willingly pay high wages to attract higher-quality job applicants. b) Firms willingly pay high wages to increase worker effort, reducing “shirking”. c) Firms willingly pay high wages to reduce turnover, which is costly to firms. d) Firms willingly pay high wages because of the law of mini wage.
Figure 3.2 Wage Rate ($ per day) 15 5. 0 20 Quantity of Labor O $15; 30 workers 5; 30 workers S₁ $5; 20 workers O $10; 40 workers D₁ 40 In Figure 3.2, assume that we have labor market demand and supply curves of D₂ and S₁, respectively. What is the equilibrium wage and employment level? S₂ D₂
(Table) Based on the table, the value for C is Competitive Labor Market Q MPP P VMP W 0 0 8 0 80 1 5 5 8 40 80 11 6 8 48 80 18 7 8 56 80 4 A 9 8 72 80 38 B 8 88 80 50 12 8 C 80 61 11 8 88 80 8 71 10 8 80 80 9. 80 9 8 72 80 10 85 5 8 40 80 88. O 400. 96. 80. 品| 2. 3.
D and E
A firm decides to borrow money to fund a new project. Just before they sign the loan, the interest rate on the loan increases. The present value of the returns from this project O A. is now lower than it was before, and so the firm is less likely to borrow the money. O B. is now higher than it was before, and so the firm is less likely to borrow the money. O C. is now higher than it was before, and so the firm is more likely to borrow the money. O D. is now lower than it was before, and so the firm is more likely to borrow the money. Reset Selection
The demand for labor curve of nurses shifts rightward if the O A. supply of labor curve for nurses shifts rightward. O B. value of marginal product of nurses increases. OC. wage rate paid to nurses rises. O D. supply of labor curve for nurses shifts leftward. O E. wage rate paid to nurses falls.
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5. As an employer hires more labor, we expect the marginal revenue product of labor to: a. Increase. b. Decrease. c. Remain constant. d. Impossible to determine. 6. If a firm has market power ( as opposed to being perfectly competitive) and can thus exercise some control over wages, a. It will pay a wages less than MRP. b. it will pay a wage eqaul to MRP. c. it will pay a wage greater than MRP. 7. Rasing the minimum wage will a. Create a surplus of labor. b. raise workers' wages. c. Increase unemployment. d. all of the above. 8. The ease with which people will increase or decrease their income relative to the rest of society is called: a. Income inequality. b. consumption inequality. c. Economic mobility. d. progressive taxation. 9. what is one reason why income inequality in a society might result in economic efficiency? a. it will raise everyone's standard of living equally. b. it will provide an incentive for people to acquire valuable skills. c. it will fully utilize the abilities…
Answer the question. Explain.