GunnerWilbert8180 GunnerWilbert8180
  • 08-12-2020
  • Business
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Because the efficiency wage is _____ the equilibrium wage, it may lead to a _____ of labor. below; surplus above; shortage below; shortage above; surplus

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topeadeniran2 topeadeniran2
  • 08-12-2020

Answer: above; surplus

Explanation:

Because the efficiency wage is above the equilibrium wage, it may lead to a supply of labor.

Since the efficiency wage as given in th question is more than the equilibrium wages, this will lead to a surplus of labor as there will be more people that are willing to work due to the increase in wages. This will turn lead to increase in supply and this will lead to surplus of labor as supply is more than demand.

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