Question

Efficiency wages are: a above-market-wages that bring forth so much added work effort that per-unit production costs are lower than at market wages. b wage payments necessary to compensate workers for unpleasant or risky work conditions. c usually less than market wages. d relevant to macro economics because they explain rightward shifts in aggregate demand.

Answer 1

Answer: Efficiency wages are the wages that are above market wages that brings more added work effort where per unit production costs are lower than at market wages(A)

Step-by-step explanation:

The efficiency wage hypothesis states that the wages, in some labour markets, are formed in a way which is not market clearing.

Efficiency wage points to the fact that managers pay their workers more than the market clearing wage to increase their efficiency or productivity and reduce the costs that is associated with employee turnover especially in the industries where there is high costs of replacing labor. The increase in labor productivity and the decrease in costs results into the higher wages paid to the employees.

Answer 2

a.)above-market-wages that bring forth so much added work effort that per-unit production costs are lower than at market wages

Step-by-step explanation:

Efficiency wages can be explained as wages that are higher than equilibrium, that is

being paid by firms so their productivity and profit can increase.

Most employers do pay efficiency wages to attract employees that are productive. And besides this there will be a higher quality recruit on the part of the employer, because he would be able to attract best hand in the organization.

Efficiency wages are above-market-wages that bring forth so much added work effort that per-unit production costs are lower than at market wages in the sense that it will motivate workers for better performance because in market wages, the quantity of labour offered by the employees is directly proportional to the amount of labour required by the firm.