Rent sharing is most commonly associated with the _____ theory.
A) human capital
B) signaling
C) marginal productivity
D) efficiency wage

Question

Quizplus · Accepted Answer

Rent sharing is the theory that firms and workers may share the benefits of higher profits, which can lead to higher wages for workers. This theory is often associated with the efficiency wage theory, which suggests that higher wages can lead to increased effort and productivity from workers, ultimately resulting in higher profits for the firm. Therefore, the correct answer is D, efficiency wage.

Rent Sharing Is Most Commonly Associated with the _____ Theory