Which of the Following Is Not a Reason That Paying

question 16

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 are below the equilibrium wage rate but still attract a sufficient number of workers.

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Definitions:

Agent

An individual or entity authorized to act on behalf of another, often in a business or legal matter.

Principal-Agent

Refers to a relationship where one party (the principal) grants authority to another party (the agent) to act on their behalf in transactions or other matters.

Employer

An individual or entity that hires and pays people to perform specific jobs or services.

Independent Contractor

A person who is hired to perform a task for another but who is not the other’s employee.