An increase in unemployment benefits causes the no-shirking wage to either: Choo

Question

An increase in unemployment benefits causes the no-shirking wage to either: Choose...increase...decrease...or remain the same .

An increase in the disutility of effort causes the no-shirking wage to either: Choose...increase...decrease... or remain the same .

An increase in the probability that a shirking employee is detected causes the no-shirking wage to either: Choose...increase...decrease... or remain the same .

An increase in the probability of finding a new job causes the no-shirking wage to either: Choose...increase... decrease... or remain the same

Explanation / Answer

An increase in unemployment benefits causes the no-shirking wage to increase.

An increase in the disutility of effort causes the no-shirking wage to decrease.

An increase in the probability that a shirking employee is detected causes the no-shirking wage to increase.

An increase in the probability of finding a new job causes the no-shirking wage to decrease.

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