The Efficiency Wage Hypothesis Holds That

question 49

Multiple Choice

The efficiency wage hypothesis holds that:

• A) there is payment of wage premiums by some employers to attract the best talent available and to enhance productivity in order to offset any increase in labor costs.
• B) unless an employee can produce a value equal to the value received in wages,it will not be worthwhile to hire that worker.
• C) there is increased willingness to reduce the size of the workforce,to outsource jobs overseas,and to restrict pay to control the costs of wages,salaries,and benefits.
• D) there is less concern with pay position relative to that of competitors and more concern with what the company can afford.