Which of the Following Factors Helps in the Reduction of Labour

question 45

Multiple Choice

Which of the following factors helps in the reduction of labour costs?

• A)Paying more benefits and less cash
• B)Paying the same wages to fewer employees
• C)Making early retirement less attractive
• D)Increasing the number of employees
• E)Expanding the core workforce

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Definitions:

Binding Price Ceiling

A government-imposed limit on the price of a commodity or service that is set below the market equilibrium price, causing a shortage.

Binding Price Floor

A government-imposed price control set above the equilibrium price, causing a surplus by forcing the price to be higher than what the market would naturally set.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable, typically resulting from taxes or price controls.

Rent Ceiling

A form of price control where a maximum limit is placed on the rent that can be charged for housing.