Paying Efficiency Wages Helps Firms Reduce the Problem of Adverse

Multiple Choice

Paying efficiency wages helps firms reduce the problem of adverse selection by:

A) generating additional profits that can be used to pay for more proficient hiring managers.
B) keeping labor unions from organizing workers in the firm.
C) encouraging unsupervised workers to maintain a high level of productivity.
D) providing an incentive for the best-qualified workers to remain with the firm.