he efficiency wage is the ?
Correct answer: C. Wage rate divided by the productivity of labor
- A. wage costs per unit of output
- B. wage rate that prevails in LDCs
- C. Wage rate divided by the productivity of labor
- D. marginal product of labor divided by wage
Explanation
The efficiency wage is measured as the wage cost per unit of effective labour or output, expressed here as the wage rate divided by labour productivity. A higher productivity-to-wage ratio would instead indicate greater labour efficiency.
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