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How might payment of an efficiency wage

(a) reduce shirking by employees and (b) reduce employee turnover?

What is the implication of the efficiency wage theory for unemployment? In what way are piece rates, commissions, royalties, profit sharing, and stock options substitutes for efficiency wages?

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019

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Related questions

1. Critically evaluate each of these statements:

a. "The relative decline of the American Labor movement can be explained by the shift from good-producing to service-providing industries and by the closely related shifts from blue- to white-collar occupations and from male to female employees."

b. "The success of unions in raising their wages relative to nonunion workers has contributed to the decline of unionism."

c. " Unionized firms have tended to become less profitable and, therefore, employers are more resistant to unionization."

 

2. Comment on each of the following statements:

a. "Unions tie the hands of management and inhibit efficient decision making."

b. "Unions contribute to economic efficiency in that union wage pressure hastens the weeding out of the high-cost, least efficient producers in each industry."

c. "Although unions may reduce wage inequality, to the extent that they reduce wage differentials based on individual merit and effort, the outcome may be rightly perceived as both inequitable and inefficient."

d. "Unions impair the efficiency of our economy indirectly by diminishing profits and thereby reducing investment and economic expansion."

 

3. Speculate about the reason(s) for each of the following facts about public sector pay:

a. The pay premium received by federal employees declined in the middle and late 1980s.

b. Local governments tend to pay less skilled workers more, and more skilled workers less, than comparably trained and experienced private-sector workers.

c. Female and African-American workers in government receive higher pay on average than their equally qualified counterparts in the private sector.

 

4. Evaluate this statement: "Profit-maximizing firms lack an incentive to provide job safety, and consequently, the federal government must intervene legislatively to protect workers against the unsafe working conditions that will surely result."

Could you give the solutions to me? I really appreciate your help. Thank you!!

Question 29

  1. A problem associated with the principal-agent relationship is

       

    imperfect information.
       

    perfect information.
       

    the low costs of monitoring behavior.
       

    none of these choices.

3 points

Question 30

  1. A problem with teams is that individuals

       

    are too individualistic to work with others.
       

    prefer piecework pay schemes.
       

    tend to free ride.
       

    none of these choices.

3 points

Question 31

  1. Backloaded compensation encourages

       

    employee turnover.
       

    employee rollover.
       

    principals to be agents.
       

    employees to stay with the firm.

3 points

Question 32

  1. Being paid a wage more than your opportunity costs is an example of

       

    economic profit.
       

    normal profit.
       

    an accounting cost.
       

    an efficiency wage.

3 points

Question 33

  1. Free riding is a problem

       

    if an individual's contribution to a team is not easily measured.
       

    if an individual's contribution is to a team is easily measured.
       

    when monitoring is costless.
       

    when team members are altruistic.

3 points

Question 34

  1. The board of directors and the CEO

       

    do not have a principal/agent relationship.
       

    are agent and principal, respectively.
       

    are principal and agent, respectively.
       

    are one in the same for small corporations.

3 points

Question 35

  1. Ways to address free riding include

       

    profit-sharing.
       

    subjective evaluations.
       

    improved monitoring.
       

    all of these choices.

3 points

Question 36

  1. A firm in which market has the most market power?

       

    perfect competition
       

    monopolistic competition
       

    oligopoly
       

    monopoly

3 points

Question 37

  1. A graphical representation of the choices between two allocations of resources is called

       

    the production possibilities frontier.
       

    supply and demand.
       

    the free choice model.
       

    the moral hazard model.

3 points

Question 38

  1. A unique resource can serve as

       

    an economic profit
       

    a sunk cost
       

    an entry barrier
       

    none of these choices

3 points

Question 39

  1. Any point inside the production possibilities frontier is called

       

    full employment.
       

    unemployment.
       

    efficient.
       

    unobtainable.

6) According to Classical theory, the economy is self-regulating. If it is in a recessionary gap, what happens? Question options:

Wages rise, the SRAS curve shifts leftward, and both Real GDP and the price level rise.

Wages fall, the SRAS curve shifts rightward, the price level falls, and Real GDP rises.

Wages fall, the SRAS curve shifts leftward, the price level rises, and Real GDP falls.

none of the above

7) According to the classical economists, which of the following statements is true?

Question options:

Financial markets ensure that S will equal I..

Interest rate flexibility will ensure that planned saving is equal to planned investment.

There is a direct relationship between the amount individuals plan to save and the interest rate - higher rates cause people to save more and lower rates reduce savings.

Interest rates determine how much business firms invest - higher interest rates reduce investment and lower rates increase investment.

All of the above are true.

10)

If actual Real GDP is greater than the full employment Real GDP, then the (actual) unemployment rate is

Question options:

greater than the natural unemployment rate and an inflationary gap exists.

less than the natural unemployment rate and a recessionary gap exists.

greater than the natural unemployment rate and a recessionary gap exists.

less than the natural unemployment rate and an inflationary gap exists.

equal to the natural unemployment rate and no gap exists.

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