Answer to Question #62854 in Macroeconomics for Gian

Question

Efficiency wages ... (several answers possible)
(a) are irrelevant for low skilled workers.
(b) are higher than market clearing wage.
(c) do not cause unemployment.
(d) are sometimes paid by employers to reduce shirking or turnover costs.

Answer 1

Efficiency wages ...
(b) are higher than market clearing wage.
(d) are sometimes paid by employers to reduce shirking or turnover costs.