Question

multiple choice question
firms that want to hire workers
o must pay higher 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 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.

Explanation:

In labor market theory, firms need to offer competitive wages. Workers have alternative job options. To attract workers away from these alternatives, firms must pay higher wage rates. Total compensation (which includes non - wage elements like benefits) is not necessarily lower. Paying lower wage rates would not attract workers away (as they can stay in their alternative jobs which likely offer at least the current wage).

Answer:

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