Dan Decides to Hire Some Additional Workers for His Golf-Ball

question 182

Multiple Choice

Dan decides to hire some additional workers for his golf-ball factory. The equilibrium wage is $12 per hour. What does efficiency wage theory suggest that it is reasonable for Dan to offer?

• A)$12 per hour
• B)less than $12 per hour, since some people would be willing to work for less
• C)enough to attract the number of applicants necessary to fill the jobs available
• D)more than $12 per hour, so as to attract a better pool of applicants

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Definitions:

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