A worker who earns an above-equilibrium wage:
A)is less likely to shirk
B)is more likely to shirk
C)has little incentive to remain in his current job
D)none of the above

Question

Quizplus · Accepted Answer

If a worker earns an above-equilibrium wage, it means that they are being paid more than the market rate for their skills and experience. This creates an incentive for the worker to work harder and be more productive, since they do not want to lose their higher paying job. Therefore, they are less likely to shirk or be lazy.

A Worker Who Earns an Above-Equilibrium Wage