According to efficiency-wage theory
I: cutting the employer payroll tax paid for hiring skilled workers leads to a smaller unemployment rate,and
II: cutting the employer payroll tax for hiring unskilled workers leads to a smaller unemployment rate.
A) I is true; II is not.
B) II is true; I is not.
C) Both I and II are true.
D) Neither I nor II is true.

Question

According to efficiency-wage theory 
I: cutting the employer payroll tax paid for hiring skilled workers leads to a smaller unemployment rate,and
II: cutting the employer payroll tax for hiring unskilled workers leads to a smaller unemployment rate.
A) I is true; II is not.
B) II is true; I is not.
C) Both I and II are true.
D) Neither I nor II is true.

Quizplus · Accepted Answer

The Answer of According to efficiency-wage theory 
I: cutting the employer payroll tax paid for hiring skilled workers leads to a smaller unemployment rate,and
II: cutting the employer payroll tax for hiring unskilled workers leads to a smaller unemployment rate.
A) I is true; II is not.
B) II is true; I is not.
C) Both I and II are true.
D) Neither I nor II is true.

According to Efficiency-Wage Theory