Which of the following is the main argument for why efficiency wages can help encourage workers to provide full effort on a job?
A) Workers do not want to risk becoming unemployed when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage.
B) Workers do not understand that high-wage workers do not need to work hard to maintain their job.
C) Management hires fewer workers at the higher efficiency wage, and therefore all workers must work harder.
D) When the efficiency wage is less than the competitive wage, workers work harder in order to convince other firms to hire them away at the higher, competitive wage.
E) None of these provide an argument for why efficiency wages encourage workers to provide full effort on a job.

Question

Quizplus · Accepted Answer

The main argument for why efficiency wages can help encourage workers to provide full effort on a job is that workers do not want to risk becoming unemployed, especially when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage. This creates an incentive for workers to work harder to maintain their employment.

Which of the Following Is the Main Argument for Why