Which of the following is NOT part of the rationale for efficiency wages?
A)An efficiency wage encourages workers to work harder to avoid risking losing their jobs.
B)An efficiency wage helps workers feel valued.
C)An efficiency wage raises the gain to workers for working more.
D)An efficiency wage rewards worker productivity with higher pay.

Question

Quizplus · Accepted Answer

Efficiency wages are paid above the market-clearing level to increase worker productivity, reduce turnover, and discourage shirking, not necessarily to reward productivity directly. Rewarding worker productivity with higher pay is more aligned with performance-based pay rather than the concept of efficiency wages.

Which of the Following Is NOT Part of the Rationale