Which of the following is NOT an example of an efficiency wage?
A) A firm paying a higher wage has less turnover costs.
B) A firm paying a higher wage has less supervision costs.
C) A firm paying a higher wage employs more educated workers.
D) A firm paying a higher wage gets more effort from its workers.

Question

Quizplus · Accepted Answer

Employing more educated workers may not necessarily be an efficiency wage, as education level does not directly impact turnover costs, supervision costs, or worker effort.

Which of the Following Is NOT an Example of an Efficiency