A college professor hires a student to babysit her children and pays the student an efficiency-wage. Which of the following is correct about the wage the student earns?
a. The wage is higher than the wage the student could earn working a similar job elsewhere.
b. The wage is the same as the wage the student could earn working a similar job elsewhere.
c. The wage is lower than the wage the student could earn working a similar job elsewhere.
d. The wage is likely to result in the student shirking responsibilities.
a
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