Which of the following is not a reason that paying efficiency wages may increase a firm's profit?
A) Efficiency wages increase worker health and therefore increase worker productivity.
B) Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C) Efficiency wages decrease worker shirking and therefore increase worker productivity.
D) Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.
Correct Answer:
Verified
Q17: Efficiency wages
A)increase frictional unemployment by keeping wages
Q18: Which of the following is an example
Q19: Efficiency-wage theory suggests that paying
A)low wages might
Q21: Ariana is the CEO of a corporation
Q23: Minimum-wage laws,unions,and efficiency wages contribute to
A)both structural
Q24: Three employers have justified their actions as
Q25: Efficiency wages,minimum-wage laws,and unions all keep wages
A)below
Q26: If there were no factors keeping wages
Q27: Minimum-wage laws
A)create frictional unemployment,while firms paying wages
Q351: Efficiency wages
A)increase productivity and reduce unemployment.
B)increase productivity
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