Which one of the following is not a feature of the efficiency wage hypothesis?
A) Paying an efficiency wage helps to reduce labour turnover and encourages firms to offer more training to their workers.
B) Workers respond to the incentive of higher wages by shirking less.
C) There are circumstances in which a firm will find it desirable to offer wages above the market- clearing rate.
D) It is efficient for a firm to offer a market- clearing wage.
Correct Answer:
Verified
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