How Does Downsizing Affect the Company

question 32

Multiple Choice

How does downsizing affect the company?

• A) After a brief company improvement, there can be many negative affects.
• B) Many employees become more committed to the organization because their job has been spared.
• C) Employees often worry about job security and become angry that they have to work harder for the same pay.
• D) Downsizing doesn't seem to affect commitment or morale.

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Definitions:

Supply Change

An alteration in the quantity of goods or services that producers are willing and able to sell in the market, due to factors like price, technology, or input costs.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, evidencing economic benefit.

Costume Jewelry

Jewelry made from inexpensive materials and imitation gems, designed to provide an attractive appearance at a lower cost than jewelry made from precious metals and stones.