A Practice Which Might Force Employers to Use More Labor

question 84

Multiple Choice

A practice which might force employers to use more labor than they would otherwise is referred to as

• A) wall propping.
• B) featherbedding.
• C) mothballing.
• D) yellow-dogging.

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Definitions:

Suppliers

Suppliers are businesses or individuals that provide products or services to other businesses or consumers, typically as part of a supply chain.

Agency Problem

In corporations, managers are the agents of stockholders and are often able to take advantage of the relationship by diverting corporate resources to their own use. Excessive pay is the primary example. The general situation is described as the agency problem. Costs associated with controlling the agency problem are agency costs.

Ownership

The legal right or title to an asset or property, with the authority to use, sell, or lease it as the owner sees fit.

Widely Dispersed

Refers to assets, individuals, or entities that are spread out over a large geographic area or among a wide range of categories or types.