Which of the Following Is Not a Reason That Paying

question 443

Multiple Choice

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

• A) Efficiency wages increase worker health and therefore increase worker productivity.
• B) Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
• C) Efficiency wages decrease worker shirking and therefore increase worker productivity.
• D) Efficiency wages decrease a country's natural rate of unemployment and therefore increase its standard of living.