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)
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ISBN:9781285165875
Author:N. Gregory Mankiw
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Chapter19: Earnings And Discrimination
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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.
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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