Efficiency wage theory says that sometimes high wages may:
A)increase efficiency if they reduce "shirking"
B)lower labour costs if they increase the need to supervise employees
C)lower labour costs if they attract low-quality applicants
D)increase efficiency if they increase turnover
E)increase efficiency if they reduce worker effort

Question

Quizplus · Accepted Answer

Efficiency wage theory suggests that paying higher wages can increase worker productivity by reducing shirking, as employees are motivated to work harder to keep their well-paying jobs.

Efficiency Wage Theory Says That Sometimes High Wages May