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Unemployment: Minimum Wage Laws and Efficiency Wages
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Unemployment: Minimum Wage Laws and Efficiency Wages
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12. Unemployment and Inflation / Unemployment: Minimum Wage Laws and Efficiency Wages / Problem 1
Problem 1
How does opportunity cost influence a worker's decision to stay in a job with an efficiency wage?
A
Higher opportunity cost of leaving encourages workers to stay.
B
Lower opportunity cost of leaving encourages workers to stay.
C
Opportunity cost only affects decisions in low-wage jobs.
D
Opportunity cost is irrelevant in this decision.
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