If an employer's behavior is supportive of the theory of efficiency wages,the employer would raise wages in an effort to (i) increase worker effort.
(ii) decrease worker turnover.
(iii) raise the quality of workers that apply for jobs at the firm.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii), and (iii)

Question

If an employer's behavior is supportive of the theory of efficiency wages,the employer would raise wages in an effort to (i)	increase worker effort.
(ii)	decrease worker turnover.
(iii)	raise the quality of workers that apply for jobs at the firm.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii), and (iii)

Quizplus · Accepted Answer

Efficiency wage theory suggests that higher wages can lead to increased worker effort, reduced turnover, and attract higher quality applicants, thus all three options are correct.

If an Employer's Behavior Is Supportive of the Theory of Efficiency