Which of the Following Is True of the Efficiency Wage

Multiple Choice

Which of the following is true of the efficiency wage model?

A) According to the efficiency wage model, wages should increase as the productivity of workers increases with experience.
B) According to the efficiency wage model, market wages should always be lower than the efficiency wage.
C) In the efficiency wage model, employers pay their employees a wage equal to the equilibrium wage as a means to increase efficiency.
D) In the efficiency wage model, employers pay their employees a wage less than the equilibrium wage to cut costs.
E) In the efficiency wage model, employers pay their employees a wage more than the equilibrium wage as a means to increase their productivities.