1. Which of the following correctly describes an efficiency wage? a) A payment according to the efficiency of the worker. b) A wage that is the product of collective bargaining. c) A bonus received by a worker for cutting costs. d) An abovemarket equilibrium wage. e) A statutory minimum wage. 2. Which of the following best describes the efficiency/equity trade-off? a) The tradeoff between working hard to be more efficient and working less to improve quality of life. b) The situation that society often faces where redistributing income results in less overall income generated. c) The situation where incomes are equalised, regardless of how much or little each person contributed to the economy. d) The finding by Angus Deaton and Daniel Kahneman that high income improves life evaluation but not emotional wellbeing. e) The situation in which distribution according to marginal productivity