When employers pay efficiency wages,they pay wages

Question

Quizplus · Accepted Answer

Efficiency wages are wages paid by employers that are higher than the equilibrium wage in the market. This is done to increase productivity and motivate workers to work harder and more efficiently. By paying higher than market wages, employers hope to attract and retain the best workers, who are likely to be more productive, and reduce labor turnover and associated recruitment and training costs. Therefore, option B (above equilibrium to increase productivity) is the best choice.

When Employers Pay Efficiency Wages,they Pay Wages