3182EconomicsMedium
Which of the following statements about efficiency wage theory is true?
APaying the lowest possible wage is always the most efficient (Profitable)
BPaying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort
CPaying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities
DFirms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law
Correct answer
B. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort
Explanation
The correct answer is Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort.