10. Which of the following is true about efficiency wages?
(A) Efficiency wages are set below the equilibrium.
(B) Efficiency wages cause frictional unemployment.
(C) Efficiency wages generate higher average wage costs for employers.
(D) Efficiency wages generate higher opportunity costs for employees.

Answer questions 11 and 12 with the following table:

| | Income Elasticity of Demand |
| --- | --- |
| Good A | 1.03 |
| Good B | 0.00 |
| Good C | -0.07 |