146) Why would a firm pay efficiency wages?146)147) Discuss the likely impact of each of the following on the unemployment rate:
Answer: An efficiency wage is a wage that is higher than the market wage. Firms payefficiency wages to raise productivity. Studies show that workers are motivated towork harder if they are paid higher wages. Put differently, a firm does notmonitor workers as closely in order to get them to be more productive. The higherwage motivates them to be productive.Page Ref: 672/290Learning Outcome: Macro-14: Identify different types and measures of unemployment and discussits causes.147)Page Ref: 671-672/289-290Learning Outcome: Macro-14: Identify different types and measures of unemployment and discussits causes.
148) What are some reasons why the unemployment rate is typically lower in the UnitedStates as compared to Canada and some Western European countries?148)
Page Ref: 671/289Learning Outcome: Macro-14: Identify different types and measures of unemployment and discussits causes.MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.149) The average price of goods and services in the economy is also known as