Efficiency wages
A)may increase productivity.
B)will increase unemployment.
C)may improve worker health.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Efficiency wages may increase productivity by motivating workers to work harder or more efficiently to keep their jobs. They may also result in better worker health and job satisfaction. However, they may also lead to higher unemployment if firms are reluctant to hire workers at the higher wage rate.

Efficiency Wages