An Efficiency Wage Describes a Wage Rate That Is

Multiple Choice

An efficiency wage describes a wage rate that is:

A) above the equilibrium wage and is paid in order to provide workers with an incentive to perform efficiently.
B) efficient because it is exactly equal to the wage rate implied by the marginal productivity theory.
C) determined by collective bargaining between unions and management.
D) equal to the VMPL adjusted so as to make the structure of compensation more equitable.