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Barney runs a small manufacturing company. He pays his employees about twice as much as other firms in the area, even though he could pay less and still recruit all the workers he needs. He believes that higher wages make his workers more loyal and hard-working. This is an example of a. a compensating differential. b. human capital. c. signaling. d. efficiency wages.
Chapter 19, Problem 3(choose chapter or problem)
Barney runs a small manufacturing company. He pays his employees about twice as much as other firms in the area, even though he could pay less and still recruit all the workers he needs. He believes that higher wages make his workers more loyal and hard-working. This is an example of
a. a compensating differential.
b. human capital.
c. signaling.
d. efficiency wages.
Questions & Answers
QUESTION:
Barney runs a small manufacturing company. He pays his employees about twice as much as other firms in the area, even though he could pay less and still recruit all the workers he needs. He believes that higher wages make his workers more loyal and hard-working. This is an example of
a. a compensating differential.
b. human capital.
c. signaling.
d. efficiency wages.
ANSWER:Step 1 of 2
Given data:
Barney runs a small manufacturing company. He pays his employees about twice as much as other firms in the area, even though he could pay less and still recruit all the workers he needs. He believes that higher wages make his workers more loyal and hard-working.