Which of the Following Research Findings Would Support an Efficiency

question 26

Multiple Choice

Which of the following research findings would support an efficiency wage explanation of pay differentials?

• A)Firms with higher turnover costs pay lower than average wages
• B)Firms with higher costs of detecting shirking pay higher than average wages
• C)Pay is positively correlated with human capital investments in a given industry
• D)Differences in observable worker characteristics explain most of the variance in pay across industries

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