Which of the Following Statements Is True of Efficiency Wages

39 Which of the following statements on the theory of efficiency wages is true. 4 rows Which of the following statements about efficiency wage theory is true.

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The theory of efficiency wages.

. An efficiency wage is a wage payment necessary to compensate workers for risk of injury on the job. An efficiency wage is a wage that automatically rises with the national index of labor productivity. Keynes believed an economy could get stuck in a recessionary gap.

Also last month 700 kilograms of direct materials were used to produce 135 units. This is known as the income effect. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law.

Which of the following statements about efficiency wages is false. The firm is an actor in the capitalist economy and also a stage on which interactions are played out among the firms employees managers and owners. Can result in an unfavourable direct labour efficiency variance.

A firms cannot choose between paying or not paying efficiency wages because they are determined by law. Are likely to create an unfavourable direct labour rate variance iii. Can result in an unfavourable direct material quantity variance ii.

O a Keynes believed wages and prices are often too flexible - falling wages can cause a recession. A They remain the same across various regions in a country. Asked Aug 22 2017 in Business by Clivesi.

If the wage is 10 per hour and a worker provides 045 units of effort per hour the employer gets 0045 efficiency units per dollar. Which of the following statements are true. B paying the lowest possible wages is always the most profitable strategy.

The actions that create a favourable direct material price variance. B They change according to the demand for and supply of labor. It promotes ethnocentrism in the work environment.

C They are the same as the living wage that a person receives. An efficiency wage is a wage that automatically rises with the national index of labor productivity. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities.

The efficiency wages are determined on the basis of the efficiency and productivity of the labor. We explain why like other economic interactions working together in firms brings mutual gains. Which of the following statements about efficiency wages is false.

Iii Under the high wage plan a worker is paid a At a time rate higher than the usual rate b According to his efficiency c At a double rate for overtime d Normal wages plus bonus iv A manufacturing industry produces product P Royalty paid on sales is 23500 and design charges paid for the product is 1500. C paying wages above the wage equilibrium increases. Equivalently a unit of effort costs 10045 222.

Which of the following statements regarding variances isare true. They are offered to attract the best employees. Natural rate of unemployment.

5 kilograms of direct materials at 3 per kilogram. An efficiency wage is a wage payment necessary to. Keynes believed the economy is self-regulating.

The employer would be indifferent between this situation and one in which the wage is 20 with an effort of 09the cost of effort is exactly the same at all points on the line. Which of the following statements is true of market wage rates. An efficiency wage is an above-market wage that minimizes a firms labor cost per unit of output.

39 which of the following statements on the theory of. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law. A Despite the problem of scarcity people do not always want producers to use the most efficient production methods.

Paying the lowest. But hiring workers is different from buying other goods and services. Which of the following statements is true.

The term efficiency wages was introduced by Alfred Marshall to denote the wage per efficiency unit of labor. A Efficiency wages are paid only to discourage shirking. It is the wage rate determined by the employer and not by the market forces of demand and supply.

It gives everyone an equal opportunity to contribute to and advance within an organization. Marshallian efficiency wages would make employers pay different wages to workers who are of different efficiencies such that the employer would be indifferent between more-efficient workers and less-efficient workers. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities.

If there is a wage increase the opportunity cost of leisure increases and as a result a worker may increase the number of hours worked. Above-equilibrium wages paid by firms in order to increase worker productivity. A company developed the following per-unit standards for its product.

These efficiency wages are believed to be justified by the fact that the best employees are assumed to be more productive and that the higher wages will bind the employee more tightly to the firm thus reducing turnover. The normal rate of unemployment around which the unemployment rate fluctuates. An efficiency wage is a wage that contains a profit-sharing component as well as traditional hourly pay.

It requires managers to ensure equality through identical treatment of employees. Last month 1000 kilograms of direct materials were purchased for 2900. Which of the following statements about efficiency wage theory is true.

The efficiency wage rate will be higher than the market clearing equilibrium wage rate. Use the following information for questions 61 and 62. B The problem of scarcity would disappear if the worlds population grew to ensure more labour was available.

B Efficiency wages discourage shirking because they create an excess supply of labour so a shirking worker who was dismissed might face a. An efficiency wage is an above-market wage that minimizes a firms labor cost per unit of output. The modern use of the term is quite different and.

Which of the following statements is true. It is possible only in a multicultural organization. An efficiency wage is a wage that contains a profit-sharing component as.

Keynes advocated running government surpluses in times of recession. If there is a wage increase a worker feels better off and may reduce the number of hours worked. - worker health - worker turnover.

Which of the following statements about efficiency wage theory is true. Efficiency wages are paid only to discourage shirking Efficiency wages discourage shirking because they create an excess supply of labour so a shirking worker who was dismissed might face a.

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