What Often Occurs During a Tight Labour Market

question 86

Multiple Choice

What often occurs during a tight labour market?

• A) There is a high unemployment rate.
• B) The demand for labour exceeds the supply of labour.
• C) The number of job applicants and job openings are about equal.
• D) There is an overall decline in compensation rates.

---

Definitions:

Setup Costs

The expenses incurred to prepare a machine, process, or system for manufacturing a new batch or product.

Variable Costs

Expenses that change in proportion to the level of business activity or production volume, such as materials and labor costs.

EMV

Stands for Expected Monetary Value, a concept in risk management used to calculate the average outcome when the future includes scenarios that may or may not happen.

Setup Costs

The expenses involved in configuring a production process or equipment before manufacturing a new batch or type of product.