A Higher Wage Could Result in a Lower Labor Cost

question 150

Multiple Choice

A higher wage could result in a lower labor cost per unit of output than a lower wage if the higher wage

• A) is accompanied by an offsetting decline in fringe benefits.
• B) increases supervision costs.
• C) reduces job turnover.
• D) increases worker absenteeism.

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Definitions:

Mortgagee

The lender in a mortgage loan agreement, typically a bank or financial institution.

Deficiency Judgment

A court order that holds a borrower personally liable for the shortfall when the sale of a foreclosed property does not cover the outstanding loan balance.

Sale

The passing of title from a seller to a buyer for a price.

Real Property

Land and anything permanently attached to it, such as buildings and trees, considered a form of real estate.