Why Would a Firm Elect to Pay the Efficiency Wage

question 72

Multiple Choice

Why would a firm elect to pay the efficiency wage?

• A)To reduce job turnover
• B)All of these
• C)They are required to do so by law.
• D)Firms have an incentive to pay the lowest wage possible.
• E)This is the only wage people are willing to work for.

---

Definitions:

Debt

An amount of money borrowed by one party from another, to be paid back with interest.

Solvency

The ability of a company to meet its long-term financial obligations and continue operations indefinitely.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, to identify trends and growth patterns.

Audit

A systematic examination and evaluation of financial records or transactions of an entity to ensure accuracy, compliance with standards, or regulations.