Caroline is the owner of a hair-styling salon and spa. She decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision
a. might increase profits if it attracts a better pool of workers to apply for jobs at her salon.
b. will increase the excess supply of labor.
c. may increase the quality of her work force.
d. All of the above are correct.
d
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Provide a utilitarian justification for using the tax system to provide a more equal distribution of income as well as two possible counterarguments to this viewpoint
What will be an ideal response?
Cheap-O Air, an airline, decides to segment the marketplace of possible consumers. They decide to segment consumers based on which class they fly in and focus on economy class. What issues, if any, arise from segmenting the marketplace based on which class consumers fly in?
A. I think it's fine to segment based on which class consumers fly in B. It's likely cheap to market to economy-class consumers C. The segment is not homogeneous (different consumers with different needs might fly in economy class for different reasons) D. Consumers in different flight classes are not accessible (e.g. your marketing efforts cannot reach them)
One of the shortcomings of the Solow growth model is that in it the rate of technological change is
A) assumed to be zero. B) assumed to be equal to the population growth rate. C) left unexplained. D) zero unless the saving rate exceeds the depreciation rate.
Which of the following issues is most unlikely to be addressed by an economist practicing positive economics?
A) the relationship between the minimum wage and the number of unemployed unskilled workers B) the effect of a minimum wage increase on inner-city crime rates C) the desirability of a minimum wage increase D) the consequences of implementing a minimum wage law in China