Question
Assighment 11/20/2017 In the mid-1980s, a famous supermodel once said that she would not get out of bed for less than $10,000 6. (presumably per day Which of the following statements about the reservation wage is correct? 0 A. The wage that you were paid for your first job most likel y was less than your reservation wage B. The wage that you were paid for your first job most likely was equal to your reservation wage O C. The w age that you were paid for your first job most likely was greater than your reservation wage t possible to say anything in general about the wage that you were paid for your first D. It is no job job, the job you will have in 10 years will pay Efficiency wage theory would predict that relative to the wage of your first more, because over 10 years your increased skill must be paid more 0 A. s will make you a more valuable worker who B. less, because it is not efficient for firms to pay workers more than the lowest wage possible O C. less, because labor markets will become more competitive over time, putting downward pressure on efficient wages. more, because firms will want to pay more to increase morale and productivity and reduce turnover D. onse to the crisis-induced recession in 2009 was to extend the length of time workers could receive . If this change were made permanent it would be expected that reservation wages would (1) () O decrease O increase O remain the same
Explanation / Answer
(A)
Option- C : The wage that you were paid for your first job most likely was greater than your reservation wage.
(B)
Option-D : more, because firms will wish to pay more to increase morale and productivity and reduce turnover
Efficiency wage theory would predict that, relative to the wage of your first job, the job you will have in 10 years will pay more, because firms will wish to pay more to increase morale and productivity and reduce turnover.
(C)
Option-B : increase
Parts of the policy response to the crisis-induced recession in 2009 was to extend the length of time workers could receive unemployment benefits.
If this change were made permanent, it would be expected that reservation wages would (1) increase.
