Which Statement by an Employer Is Consistent with the Market-Clearing

question 81

Multiple Choice

Which statement by an employer is consistent with the market-clearing theory of unemployment?

• A)"I pay more than the going rate so I can hire good workers."
• B)"I pay only enough to attract workers who are at the bottom of the pay scale."
• C)"I love it when inflation goes up because that drives down my wage costs."
• D)"Workers can always find jobs,if only they lower their expectations."
• E)"Unions have only their current members' interests at heart."

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Definitions:

Profit Centre

A branch or division of a company that is treated as a separate business, responsible for generating its own revenue and profits.

Performance Measure

Indicators used to evaluate the efficiency, effectiveness, and success of an organization's activities or employees' actions.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated as the net profit of the investment divided by its cost.

Responsibility Report

A financial report that breaks down costs, revenues, and performance metrics by areas of accountability, aiding in evaluating managers' performance.