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Which of the Following Is Not a Potential Reason for Offering

Question 40

Multiple Choice

Which of the following is not a potential reason for offering a wage above the market wage?


A) A higher wage contributes to improved worker health.
B) A higher wage makes the opportunity cost of losing a job higher, thus reducing "shirking."
C) It reduces moral hazard.
D) Higher wages attract more productive workers.
E) Higher wages signal prestige and thus attract workers from elite schools.

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