A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.
A)minimum
B)equilibrium
C)efficiency
D)union

Question

Quizplus · Accepted Answer

An efficiency wage is a wage offered by an employer that is higher than the equilibrium wage rate with the goal of incentivizing more effort and productivity from the workers. This can lead to benefits such as lower turnover rates, higher job satisfaction, and better quality work. Minimum wage refers to the legal minimum wage rate set by the government, equilibrium wage rate is the wage rate where the demand for labor is equal to the supply of labor, and union wage refers to the wage rate negotiated by a labor union on behalf of its members.

A Wage Offered by an Employer as an Incentive for More