Which of the Following Is True of Corporate Downsizing

question 51

Multiple Choice

Which of the following is true of corporate downsizing?

• A) It helps companies identify the most loyal workers.
• B) It initiates a midlife crisis on those who are laid off.
• C) It is a tactic used by companies to increase the generativity of their workers.
• D) It mostly affects people who are flexible about their career choices.

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Definitions:

Labor Supply Curve

The labor supply curve illustrates the relationship between the wage rate and the quantity of labor that workers are willing to offer at different wage rates.

Substitution Effect

The change in the consumption patterns of goods or services, as consumers replace pricier items with more affordable substitutes when prices change.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Real Hourly Wages

The hourly wage of workers adjusted for inflation, representing the purchasing power of the income.