What Is One Reason Why an Efficiency Wage Leads to Greater

question 59

Multiple Choice

What is one reason why an efficiency wage leads to greater worker productivity?

• A)Earning more than the market wage gives workers an incentive to stay with the firm.
• B)An efficiency wage deters workers from trying to start a union.
• C)Due to competition for jobs, firms pay less overall for a worker in the long run.
• D)An efficiency wage is set right at market equilibrium, which creates an efficient labor market.

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