An efficiency wage is A. an above-market wage paid by a firm to maximize worker productivity and reduce turnover that raises the level of structural unemployment. B. an above-market wage paid by a firm to maximize the output of the firm that increases the level of structural unemployment. C. a below-market wage paid by a firm to maximize firm profits and reduce turnover that reduces the natural rate of unemployment. D. an above-market wage paid by a firm to maximize worker productivity and reduce turnover that reduces the level of structural unemployment.
An efficiency wage is A. an above-market wage paid by a firm to maximize worker productivity and reduce turnover that raises the level of structural unemployment. B. an above-market wage paid by a firm to maximize the output of the firm that increases the level of structural unemployment. C. a below-market wage paid by a firm to maximize firm profits and reduce turnover that reduces the natural rate of unemployment. D. an above-market wage paid by a firm to maximize worker productivity and reduce turnover that reduces the level of structural unemployment.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An efficiency wage is
an above-market wage paid by a firm to maximize worker productivity and reduce turnover that raises the level of structural unemployment .
an above-market wage paid by a firm to maximize the output of the firm that increases the level of structural unemployment.
a below-market wage paid by a firm to maximize firm profits and reduce turnover that reduces the natural rate of unemployment.
an above-market wage paid by a firm to maximize worker productivity and reduce turnover that reduces the level of structural unemployment.
equal to the market-clearing wage, so that social welfare is maximized while maintaining the level of frictional unemployment.
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