Brian Is the Owner of a Firm That Produces Bottled

question 312

Multiple Choice

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

• A)The higher the wage, the less often his workers will choose to leave his firm.
• B)The higher the wage, the lower will be the cost of obtaining needed supplies.
• C)The higher the wage, the more he can charge for his water.
• D)The higher the wage, the more he will have to monitor his workers for shirking.

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Definitions:

Domestic Output

The total value of all goods and services produced within the borders of a nation over a specific period of time.

Pre-migration

The period or processes occurring before the migration of individuals or groups from one place to another.

Immigration

Moving to a different country with the intention of living there on a permanent basis.

Skill Transferability

The extent to which skills acquired in one context or job can be effectively applied to another.