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Which of the Following Research Findings Would Support an Efficiency

Question 4

Multiple Choice

Which of the following research findings would support an efficiency wage explanation of pay differentials?


A) Firms with higher turnover costs pay lower than average wages
B) Firms with higher costs of detecting shirking pay higher than average wages
C) Pay is positively correlated with human capital investments in a given industry
D) Differences in observable worker characteristics explain most of the variance in pay across industries

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