The theory of efficiency wages states that workers and companies perform more efficiently when wages are ____________.
A)inflation-adjusted
B)above equilibrium
C)government legislated
D)union-supported

Question

Quizplus · Accepted Answer

The theory of efficiency wages states that workers and companies perform more efficiently when wages are above equilibrium.
Key Takeaway: The theory of efficiency wages holds that worker productivity increases when they are paid wages above equilibrium. These wages are considered incentives for higher productivity and more efficient processes.

The Theory of Efficiency Wages States That Workers and Companies