Difficulty: Medium

Average Score: 50%

Before the widespread acceptance of the efficiency-wage theory, scholars believed that increased worker productivity benefited workers in two ways: higher real wages and/or reduced working hours. According to the efficiency-wage theory, however, the causation can go the other way as well: productivity depends on the real wage paid by the firm. Productivity gains from higher wages result primarily from greater incentives to work coupled with diminished incentives to shirk, and secondarily from employers' ability to raise productivity by using higher wages to reduce turnover, improve morale, and attract superior applicants. Just as an efficiently higher wage may lower per-unit labor costs, so might judiciously shortened workweeks. Most workweek reductions, such as France's 1998 decision to implement a 35-hour workweek, are meant to ameliorate unemployment. While this is a worthy objective, the efficiency-week theory predicts far greater benefits. The theory asserts that an optimal number of hours worked per week will increase the productivity of the labor force for reasons akin to those argued by the efficiency-wage theorists. Moreover, an efficient week can have substantial social and economic benefits: workers will have more time to spend with family, as well as more time to consume a greater volume of goods.

It can be inferred that the author of the passage and Clayton would both agree that

Rationale

The decision was not made primarily with the view toward taking full advantage of all the effects that a workweek reduction can have.

The author suggests that while the 35-hour workweek aimed to reduce unemployment, it overlooks the broader productivity benefits that could arise from such a reduction, as indicated by the efficiency-wage theory.

A (the food preferences of the scrub jays in Clayton's experiment are difficult to explain) YOUR ANSWER

This choice implies that the focus on unemployment is what sets this decision apart from others. However, the passage does not indicate that this focus is unique, as it discusses workweek reductions broadly and suggests that they often aim to address unemployment.

B (the presence of episodic memory cannot be inferred solely on the basis of observable behavior) YOUR ANSWER

The passage acknowledges the objective of reducing unemployment as worthy but does not specifically claim that achieving this goal is extremely difficult. Instead, it emphasizes the potential for greater productivity benefits.

D (Tulving substantially underestimated the ability of animals to bind different kinds of information) YOUR ANSWER

The passage critiques the decision's rationale not for being based on mistaken assumptions but for failing to consider the full range of positive outcomes that could result from reduced work hours, as supported by the efficiency-wage theory.

E (Clayton's experiment had certain fundamental design flaws that make it difficult to draw any conclusions about scrub jays' memories) YOUR ANSWER

While the passage discusses unemployment, it does not assert that the decision-makers overestimated its dangers. Instead, it critiques the limited view on the advantages of workweek reductions without suggesting an overestimation of unemployment risks.

Conclusion

The author infers that France's 1998 decision to implement a 35-hour workweek was limited in scope, primarily targeting unemployment rather than leveraging the comprehensive productivity benefits outlined by the efficiency-wage theory. This perspective highlights the potential for greater economic and social advantages that can arise from a well-considered reduction in work hours, beyond merely addressing unemployment.

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