All of the following are true regarding efficiency wage theory research except __________
A) higher wages is associated with fewer disciplinary layoffs.
B) fewer supervisors are required.
C) higher wages reduces profits.
D) more applicants apply for jobs.

Question

Quizplus · Accepted Answer

Efficiency wage theory suggests that paying higher wages can result in benefits such as increased productivity, reduced turnover, and fewer disciplinary issues. However, it does not necessarily suggest that higher wages always lead to reduced profits. In fact, some research has found that the benefits of higher wages can outweigh the cost in terms of increased profits. Therefore, option C is incorrect as it suggests otherwise. Options A, B, and D are true statements in accordance with efficiency wage theory research.

All of the Following Are True Regarding Efficiency Wage Theory