The Efficiency Wage Theory States That by Paying Their Employees

question 75

Multiple Choice

The efficiency wage theory states that by paying their employees more than the market-clearing wage, employers hope to

• A) reduce productivity.
• B) set up incentives for employees to shirk their duties.
• C) increase turnover.
• D) improve employee morale.

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Definitions:

Emotional Effects

Refers to the impact on an individual's feelings or emotional state, often caused by external events or stimuli.

Fatigue

A state of physical or mental exhaustion resulting from intense activity, stress, or lack of sleep, often impairing normal functioning.

Life Stressors

Events or conditions in an individual's life that cause significant strain or pressure.

Significant Accomplishments

Notable achievements or contributions that have had a considerable impact on an organization or field of work.