An efficiency wage is defined as
A) a wage above the competitive wage that elicits greater effort on the part of workers.
B) a wage below the competitive wage that elicits greater effort on the part of the workers.
C) any wage scheme that is accepted by the union.
D) any wage scheme that pays different workers different wages.
E) any wage scheme that pays all workers the same wage.

Question

Quizplus · Accepted Answer

An efficiency wage is a wage that is deliberately set above the competitive market level to increase worker productivity. By paying more, employers motivate their employees to work harder, reduce turnover, and attract more qualified candidates.

An Efficiency Wage Is Defined as