Paying Efficiency Wages Helps Firms Reduce the Problem of Moral

Multiple Choice

Paying efficiency wages helps firms reduce the problem of moral hazard by:

A) generating additional profits that can be used to improve working conditions.
B) matching the wages each worker is paid to the number of units of output each worker produces.
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.