Above-equilibrium wages caused by efficiency wages will most likely result in (i) an increase in the quantity of labor supplied.
(ii) a surplus of labor.
(iii) increased unemployment.

Question

Above-equilibrium wages caused by efficiency wages will most likely result in (i)	an increase in the quantity of labor supplied.
(ii)	a surplus of labor.
(iii)	increased unemployment.

Quizplus · Accepted Answer

Above-equilibrium wages due to efficiency wages can lead to an increase in the quantity of labor supplied as more workers are attracted to the higher wages. This can create a surplus of labor, as the quantity of labor supplied exceeds the quantity demanded at that wage level. Consequently, this surplus can result in increased unemployment, as not all workers who want to work at the higher wage can find jobs.

Above-Equilibrium Wages Caused by Efficiency Wages Will Most Likely Result