A(n) _____ is higher than the equilibrium wage in order to motivate the employee to work hard.
A)real wage
B)permanent income
C)nominal wage
D)efficiency wage

Question

Quizplus · Accepted Answer

An efficiency wage is a wage that is set higher than the equilibrium wage in order to motivate employees to work harder and be more productive. By offering a higher wage, employers hope to attract and retain the best workers and increase their overall output. This can be particularly effective in industries where employee productivity is difficult to measure or incentivize in other ways.

A(n) _____ Is Higher Than the Equilibrium Wage in Order