Multiple Choice
Efficiency wage theory suggests that firms may hold wages above the market clearing rate because
A) they believe that the productivity of workers increases with the wage rate.
B) unspoken agreements between workers and firms are in place.
C) it is required by law that they do so.
D) long-term contracts fix wage rates for a period of one to three years.
Correct Answer:
Verified
Correct Answer:
Verified
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