Which of the following statements is not correct?
A) It is possible that additional education will increase a worker's wage without increasing the worker's productivity.
B) If discriminating wage differentials persist in competitive markets, it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
C) An efficiency wage corresponds to a lower wage that a nondiscriminating employer pays to a worker because a discriminating employer won't hire her.
D) In competitive markets, workers are paid a wage equal to the value of their marginal product.

Question

Quizplus · Accepted Answer

An efficiency wage is a higher wage paid by a firm to increase workers' productivity and reduce turnover, not a lower wage paid by a nondiscriminating employer due to discrimination by a discriminating employer.

Which of the Following Statements Is Not Correct