A firm may pay efficiency wages in an attempt to
A)reduce incentives to shirk.
B)reduce turnover.
C)attract a well-qualified pool of applicants.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Efficiency wages are higher than equilibrium wages in order to motivate workers to be more productive, reduce shirking, and decrease turnover. By paying higher wages, firms can attract a pool of more qualified applicants and reduce the costs of training new workers. Therefore, all of the above choices are correct.

A Firm May Pay Efficiency Wages in an Attempt to