What concept is associated with the notion that employers can get greater effort from workers by paying them a relatively high, above-equilibrium wage?
A) profit sharing
B) efficiency wages
C) piece-rate wages
D) bonus or commissions

Question

Quizplus · Accepted Answer

The concept associated with the notion that employers can get greater effort from workers by paying them a relatively high, above-equilibrium wage is efficiency wages. Efficiency wages refer to the practice of paying workers more than the market-clearing wage rate in order to increase their motivation, loyalty, and productivity. By paying above the equilibrium wage rate, employers hope to attract and retain the best workers, reduce turnover and absenteeism, and encourage employees to work harder and more efficiently.

What Concept Is Associated with the Notion That Employers Can