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Unemployment: Minimum Wage Laws and Efficiency Wages
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Unemployment: Minimum Wage Laws and Efficiency Wages
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11. Unemployment and Inflation / Unemployment: Minimum Wage Laws and Efficiency Wages / Problem 2
Problem 2
Why might an employer choose to pay efficiency wages?
A
To increase worker efficiency by paying above equilibrium.
B
To maintain market balance by paying at equilibrium.
C
To reduce costs by paying below equilibrium.
D
To comply with government regulations.
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