The logic of efficiency wages is that if an employer pays a high wage:
A)workers will invest in additional skill development.
B)the firm thereby shares profits with workers.
C)an employee will be motivated to work hard.
D)low-skilled workers will be unlikely to apply for work with that employer.

Question

Quizplus · Accepted Answer

The logic of efficiency wages is that if an employer pays a high wage, an employee will be motivated to work hard. This is because the employee recognizes that the wage is higher than what they could earn elsewhere and therefore values their job more. This increased motivation and job satisfaction can lead to improved productivity and lower turnover rates, ultimately benefiting the employer.

The Logic of Efficiency Wages Is That If an Employer