When the Labor Force Participation Rate Falls, the Average Wage

question 15

Multiple Choice

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

• A) Workers who have the worst wage options are those most likely to leave the labor force.
• B) Educated workers are those most likely to leave the labor force.
• C) The most experienced workers are those most likely to leave the labor force.
• D) Wages do not consider salaried workers.
• E) The United States has a negatively skewed wage distribution.

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Definitions:

Multinational Conglomerate

A large corporation that owns a variety of companies in different industries and countries.

International Management

The practice of managing businesses operations across different countries, taking into consideration cultural, legal, and economic differences.

Personnel Synergy

The increased effectiveness that results when a group of individuals work together compared to when they work independently.

Market Synergy

The collaboration between businesses or individuals in the marketplace to enhance their collective performance or create a more valuable outcome than could be achieved individually.