Figure 19-5
-Refer to Figure 19-5. Given demand for labor, D₁, and supply of labor, S₂, which of the following could be considered an efficiency wage?

Question

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D₁, and supply of labor, S₂, which of the following could be considered an efficiency wage? A)$7 B)$6 C)$5 D)$8

Quizplus · Accepted Answer

An efficiency wage is typically set above the equilibrium wage to increase worker productivity and reduce turnover. If $7 is the equilibrium wage, then $8 would be an efficiency wage.

Figure 19-5 -Refer to Figure 19-5. Given Demand for Labor, D1, and Labor

Figure 19-5 -Refer to Figure 19-5. Given Demand for Labor, D₁, and Labor