Because the efficiency wage is _____ the equilibrium wage,it may lead to a _____ of labour.
A) below;shortage
B) below;surplus
C) above;shortage
D) above;surplus

Question

Quizplus · Accepted Answer

Efficiency wages are set above the equilibrium wage to increase worker productivity and loyalty, which can lead to a surplus of labor as more workers are willing to work at this higher wage than there are jobs available.

Because the Efficiency Wage Is _____ the Equilibrium Wage,it May