If All Employers Pay an Efficiency Wage,then Which of the Following

question 12

Multiple Choice

If all employers pay an efficiency wage,then which of the following will increase the unemployment rate,other things the same?

• A) It becomes less costly to monitor worker productivity.
• B) Due to a mistake, firms reduce their wages.
• C) The cost to the firm of workers shirking goes up.
• D) Workers put a lower value on shirking.

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