# Which of the following statements about efficiency wage theory is true ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Which of the following statements about efficiency wage theory is true ? Correct Answer: D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following statements about efficiency wage theory is true ?

Direct Answer & Quick Reference

The correct option is **D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort**.

A. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities

B. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law

C. Paying the lowest possible wage is always the most efficient (Profitable)

D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort **(Correct Answer)**

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Verified Key: D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort
Solved by 3,260+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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