Question

multiple choice question
firms that want to hire workers
o must pay lower wage rates to leave them at the alternative job opportunities available to
them.
o must pay lower wage rates to attract them away from the alternative job opportunities
available to them.
o must pay higher wage rates but lower total compensation to attract them away from alter-
native job opportunities.
o must pay higher wage rates to attract them away from the alternative job opportunities
available to them.
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Explanation:

In the labor market, firms compete for workers. Workers have alternative job opportunities. To attract workers away from these alternatives, firms need to offer something more appealing. Wage rates are a key factor. If a firm pays lower wage rates, workers have no incentive to leave their current or alternative jobs. Paying higher wage rates makes the firm's job offer more attractive compared to the alternative job opportunities. Total compensation (which includes non - wage benefits) is not mentioned in the context of being lower while attracting workers. The main focus is on wage rates relative to alternatives.

Answer:

must pay higher wage rates to attract them away from the alternative job opportunities available to them.