One reason the lowest wage rate is not necessarily the same as the efficiency wage is that workers might
A)be more productive at a higher wage rate.
B)have more incentive to shirk at higher wage rates.
C)be tempted to switch jobs more frequently at higher wage rates.
D)be less inclined to work well at a higher wage rate.

Question

Quizplus · Accepted Answer

Efficiency wages are set above the market-clearing level to increase worker productivity, as higher wages can motivate workers to work harder and be more efficient.

One Reason the Lowest Wage Rate Is Not Necessarily the Same