Efficiency wages paid to workers ________.
A) equal the lowest pay that workers would accept
B) are wages above the lowest pay that workers would accept
C) equal the marginal revenue product of the workers
D) are wages adjusted for changes in the price level

Question

Quizplus · Accepted Answer

Efficiency wages are wages paid to workers above the market-clearing wage rate. Employers pay more than the lowest pay that workers would accept to motivate workers to be more productive and to reduce turnover costs.

Efficiency Wages Paid to Workers ________