OPaying higher wages tends to reduce the average experience level of a firm's workers. O Higher wages cause workers to shirk more of their responsibilities. O Paying higher wages can reduce a firm's training costs.
OPaying higher wages tends to reduce the average experience level of a firm's workers. O Higher wages cause workers to shirk more of their responsibilities. O Paying higher wages can reduce a firm's training costs.
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: Earnings And Discrimination
Section: Chapter Questions
Problem 3PA
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![7. The theory of efficiency wages
Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply.
O Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.
O Paying higher wages tends to reduce the average experience level of a firm's workers.
O Higher wages cause workers to shirk more of their responsibilities.
O Paying higher wages can reduce a firm's training costs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4add9636-959c-4ec8-be31-918e48d1ad35%2F417e0581-e795-4a55-a071-0a92fed81c57%2Fe0k2zdd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. The theory of efficiency wages
Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply.
O Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.
O Paying higher wages tends to reduce the average experience level of a firm's workers.
O Higher wages cause workers to shirk more of their responsibilities.
O Paying higher wages can reduce a firm's training costs.
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