Economists Have Made Several Recommendations to Reduce Barriers to Employment

question 9

Multiple Choice

Economists have made several recommendations to reduce barriers to employment sharing programs. Which of the following is an example of such a recommendation?

• A) banning the scheduling of overtime hours
• B) reducing quasi-fixed labour costs
• C) raising quasi-fixed labour costs
• D) hiring more employees in order to reduce the need for overtime hours
• E) prorating employer contributions to medical, dental, and life insurance plans according to the number of hours worked

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Definitions:

Marginal Productivity

The additional output derived from the use of one more unit of a factor of production, holding all other factors constant.

Productive Farmland

Land that is capable of producing a high yield of crops due to its fertility, favorable climate, or efficient management.

Diminishing Returns

The principle that as an increasing amount of one factor of production is employed, holding all other factors constant, the additional output generated will eventually decrease.

Marginal Productivity

Marginal productivity refers to the extra output, income, or benefit derived from using an additional unit of a variable factor of production, holding all other inputs constant.