Which of the following both make a firm more likely to pay efficiency wages?
A)it is easy to judge the quality of applicants and after workers have worked for the firm a while they tend not to look for other jobs
B)it is easy to judge the quality of applicants and after workers have worked for the firm a while they tend to look for other jobs
C)it is difficult to judge the quality of applicants and after workers have worked for the firm a while they tend not to look for other jobs
D)it is difficult to judge the quality of applicants and after workers have worked for the firm a while they tend to look for other jobs

Question

Quizplus · Accepted Answer

Efficiency wages are more likely to be paid when it is difficult to judge the quality of applicants and when workers tend to look for other jobs, as higher wages can attract better applicants and reduce turnover.

Which of the Following Both Make a Firm More Likely