Older Employees Are Less Valuable Resources to Firms Than Younger

question 74

True/False

Older employees are less valuable resources to firms than younger employees,because the older employees have lower stocks of knowledge. Consequently,employee reductions should begin with early-retirement inducements.

---

Definitions:

Minimum Wage Rate

The lowest legally allowed hourly payment for workers, established to ensure a minimum standard of living for employees.

Economic Rent

Income earned from the use of a resource that is in fixed supply; a payment to a factor of production in excess of the cost needed to bring that factor into production.

Nominal

Referring to a value expressed in current prices, without adjustment for inflation, as opposed to real values which are adjusted for inflation.

Real Wage

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought.