Final answer:
The higher the cost associated with employee termination does not increase the value of hiring a risky candidate.
Step-by-step explanation:
The statement 'The higher the cost associated with employee termination, the higher the value of hiring a risky candidate' is False. According to the Efficiency Wage Theory, employers often find it beneficial to pay their employees more than market conditions dictate. This is because higher pay motivates employees to work harder and stay with the current employer. By avoiding wage cuts and retaining well-motivated employees, the employer minimizes the costs of training and hiring new workers.