When the Economy Goes into a Recession and fiRms Require

question 258

Multiple Choice

When the economy goes into a recession and firms require less labor, managers tend to

• A) reduce wages to reflect the lower demand for labor.
• B) avoid cutting wages, for fear of drops in worker productivity.
• C) lay off workers and keep wages of the remaining workers constant.
• D) keep all of their workers by spreading work more thinly.

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Definitions:

Authority to Manage

Refers to the power or right delegated to an individual or group to make decisions and oversee the administration of an organization, property, or legal entity.

Executive Corporate Officer

A high-ranking individual within a corporation, responsible for making major corporate decisions.

Potential Liability

The possibility of being responsible for some future obligation or facing legal penalties.

Specially Customized

Tailored or adapted for a specific purpose, user, or requirement, often involving unique modifications or designs.