Barney runs a small manufacturing company. Hepays his employees about twice as much as otherfirms in the area, even though he could pay less andstill recruit all the workers he needs. He believesthat higher wages make his workers more loyal andhard-working. This is an example ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wages.

Barney runs a small manufacturing company. Hepays his employees about twice as much as otherfirms in the area, even though he could pay less andstill recruit all the workers he needs. He believesthat higher wages make his workers more loyal andhard-working. This is an example ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wages.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 4CQQ

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