Because the efficiency wage is _____ the equilibrium wage,it may lead to a _____ of labor.
A)below;shortage
B)below;surplus
C)above;shortage
D)above;surplus

Question

Quizplus · Accepted Answer

Efficiency wages are set above the equilibrium wage to increase productivity, which can lead to a surplus of labor as more workers are willing to work at the higher wage than there are jobs available.

Because the Efficiency Wage Is _____ the Equilibrium Wage,it May