Which of the following is an example of a reason why firms might pay efficiency wages? At equilibrium wages:
A) Workers sleep when the boss is not looking because workers are not deeply concerned about being fired.
B) Workers often quit to find better jobs.
C) Only minimally qualified workers apply for the job.
D) Workers cannot afford a healthy diet so they fall asleep at work due to a lack of energy.
E) All of these answers

Question

Quizplus · Accepted Answer

Efficiency wages are paid above equilibrium to increase productivity by reducing shirking (A), turnover (B), attracting better applicants (C), and ensuring workers are healthy and energetic (D).

Which of the Following Is an Example of a Reason