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.
Correct Answer:

Verified
Correct Answer:
Verified
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