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What Is One Reason Why an Efficiency Wage Leads to Greater

Question 168

Multiple Choice

What is one reason why an efficiency wage leads to greater worker productivity?


A) Earning more than the market wage gives workers an incentive to stay with the firm.
B) An efficiency wage deters workers from trying to start a union.
C) Due to competition for jobs, firms pay less overall for a worker in the long run.
D) An efficiency wage is set right at market equilibrium, which creates an efficient labor market.

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