Efficiency wages refer to wages ________.
A) adjusted for inflation that help workers buy the necessary amounts of goods and services
B) paid by employers that help workers purchase expensive health insurance plans for their families
C) adjusted for exchange rate fluctuations
D) paid by employers to increase the motivation and productivity of workers

Question

Quizplus · Accepted Answer

Efficiency wages are wages paid by employers above the market equilibrium wage rate to increase the motivation and productivity of workers. By paying higher wages, employers can attract and retain higher-quality workers, increase worker effort, reduce turnover, and improve the overall performance of the firm.

Efficiency Wages Refer to Wages ________