Question

__________ argues that the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate

Answer 1

Answer:

Efficiency wage theory

Explanation:

Efficiency wage theory was first postulated by Alfred Marshall, where he viewed compensation to workers as based on their efficiency.

Companies use efficient wage to reduce staff turnover, as staff are motivated to stay because of wages that are above the industry standard.

It is also a way to reduce cost mostly in industries where the cost of staff replacement is high.