Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Quick Check Multiple Choice - Page 410: 3

Answer

d. efficiency wages

Work Step by Step

Efficiency wages is the concept of explaining wage differences by which certain firms pay higher wages (read as above-equilibrium wages) to increase worker productivity and the quality of workmanship. In this question, Fred pays his employees about twice what other firms pay in order to retain his labour and also to obtain higher productivity.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions