Efficiency wages may cause a _____ of labor because they _____ the equilibrium wage.
A)shortage; fall below
B)surplus; fall below
C)shortage; exceed
D)surplus; exceed

Name: Efficiency wages may cause a _____ of labor because they _____ the equilibrium wage. A)shortage; fall below B)surplus; fall below C)shortage; exceed D)surplus; exceed
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Question

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Efficiency wages cause a surplus of labor because they are set above the equilibrium wage, attracting more workers than there are jobs available.

Efficiency Wages May Cause a _____ of Labor Because They