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Which Statement by an Employer Is Consistent with the Efficiency

Question 42

Multiple Choice

Which statement by an employer is consistent with the efficiency wage theory?


A) "I pay more than the going rate so that my employees work hard."
B) "I pay only enough to attract workers who are at the bottom of the pay scale."
C) "I love it when unemployment goes up because that drives down my wage costs."
D) "Workers can always find jobs,if only they lower their expectations."
E) "Unions have only their current members' interests at heart."

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