One Efficiency-Wage Theory Implies That Firms Pay High Wages Because

question 63

Multiple Choice

One efficiency-wage theory implies that firms pay high wages because:

• A) this practice increases the problem of moral hazard.
• B) in wealthy countries, it is important to pay workers high wages to improve their health.
• C) the more a firm pays its workers, the greater their incentive to stay with the firm.
• D) paying high wages promotes adverse selection.

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