Employers who choose to pay their workers a wage that exceeds the equilibrium wage are acting in accordance with
A)efficiency-wage theories.
B)equilibrium wage theories.
C)screening theories.
D)signaling theories.

Question

Quizplus · Accepted Answer

Efficiency-wage theories suggest that paying workers more than the equilibrium wage can lead to increased productivity, loyalty, and reduced turnover, which can be beneficial for the employer in the long run.

Employers Who Choose to Pay Their Workers a Wage That