According to efficiency wage theory, which of the following is a way to increase employees' work effort?

Question

Quizplus · Accepted Answer

Efficiency wage theory suggests that higher wages can increase workers' work effort by increasing their motivation and reducing turnover. This is because employees feel more valued and motivated when they are paid more, which can lead to increased productivity and job satisfaction. Additionally, higher wages can reduce the likelihood of sickness and absenteeism, leading to a more productive workforce. Therefore, increasing wages is the most effective way to increase employees' work effort according to efficiency wage theory.

According to Efficiency Wage Theory, Which of the Following Is