Which one of the following is not typically offered as an explanation for efficiency wages?
A)An employer will not pay a wage that exceeds the market rate
B)A higher wage may reduce turnover
C)A higher wage may allow lower income workers to afford better nutrition that increases their stamina
D)The higher wage may be perceived by workers as raising the opportunity cost of shirking

Question

Quizplus · Accepted Answer

Efficiency wage theories suggest that paying above the market rate can have benefits such as reducing turnover, improving worker health and productivity, and decreasing shirking by increasing the opportunity cost of losing the job. They do not claim that employers will not pay above the market rate; rather, they provide reasons why employers might choose to do so.

Which One of the Following Is Not Typically Offered as an Explanation