Multiple Choice
How does the theory of efficiency wages explain above-equilibrium wages
A) Employers are forced to pay higher wages in efficient markets.
B) Employers give their workers a higher wage in the hope that it will lead to increased productivity.
C) Workers get a raise in wage when they prove they are increasing their productivity.
D) Workers demand higher wages to compensate for poor fringe benefits.
Correct Answer:

Verified
Correct Answer:
Verified
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