Which of the following is the main argument for why efficiency wages can help encourage workers to provide full effort on a job? O Workers do not understand that high-wage workers do not need to work hard to maintain their job. O Workers do not want to risk becoming unemployed when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage. O When the efficiency wage is less than the competitive wage, workers work harder in order to convince other firms to hire them away at the higher, competitive wage. O Management hires fewer workers at a higher efficiency wage, and therefore all workers must work harder.

Which of the following is the main argument for why efficiency wages can help encourage workers to provide full effort on a job? O Workers do not understand that high-wage workers do not need to work hard to maintain their job. O Workers do not want to risk becoming unemployed when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage. O When the efficiency wage is less than the competitive wage, workers work harder in order to convince other firms to hire them away at the higher, competitive wage. O Management hires fewer workers at a higher efficiency wage, and therefore all workers must work harder.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 2SQP

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