Which of the following is an example of an efficiency wage?

A) A high wage paid to compensate for dangerous work such as coal mining
B) An above-equilibrium wage offered by a firm to attract a more talented pool of job applicants
C) A wage below the minimum wage but supplemented by customer tips
D) A high wage paid to a college graduate for a high-skill job such as electrical engineering

Efficiency Wage

A wage rate set above the market equilibrium to increase productivity and efficiency among workers by attracting and retaining higher-quality employees.

Above-Equilibrium Wage

A situation where wages for a job exceed the market equilibrium, often due to minimum wage laws, unions, or other factors, potentially causing a surplus of applicants.

Talented Pool

A collective term referring to a group of individuals who possess high levels of skill, expertise, or ability in specific areas.