medium · SAT Reading & Writing

Economists have long debated the impact of 'efficiency wages'—wages set above the market equilibrium to increase worker productivity. Supporters argue that such wages reduce employee turnover and foster loyalty. Others, however, ______ that these higher costs can inadvertently lead to reduced hiring, as firms struggle to maintain profit margins while paying higher-than-average salaries.

  1. Contend
  2. Lament
  3. Verify
  4. Ignore

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