Which of the Following Is the Main Argument for Why

question 3

Multiple Choice

Which of the following is the main argument for why efficiency wages can help encourage workers to provide full effort on a job?

• A) Workers do not want to risk becoming unemployed when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage.
• B) Workers do not understand that high-wage workers do not need to work hard to maintain their job.
• C) Management hires fewer workers at the higher efficiency wage, and therefore all workers must work harder.
• D) When the efficiency wage is less than the competitive wage, workers work harder in order to convince other firms to hire them away at the higher, competitive wage.
• E) None of these provide an argument for why efficiency wages encourage workers to provide full effort on a job.

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