Multiple Choice
Which is not a property of an optimal efficiency wage?
A) There is involuntary unemployment.
B) The efficiency wage is higher than the competitive wage.
C) Employed workers will not shirk on the job.
D) Any structural unemployment that results from an efficiency wage is efficient for the economy as it helps sort nonshirkers and shirkers into good and bad jobs, respectively.
E) Employment will be less with an efficiency wage than with a competitive wage.
Correct Answer:

Verified
Correct Answer:
Verified
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