Higher wages generally
A) decrease worker productivity due to the fact that workers have backward-bending labor supply curves.
B) decrease worker productivity due to shirking.
C) increase worker productivity due to moral hazard.
D) increase worker productivity by increasing the quality of the applicant pool.

Question

Quizplus · Accepted Answer

Higher wages can attract a higher quality pool of job applicants who are more skilled and motivated to perform well on the job, leading to increased productivity.

Higher Wages Generally