A Firm Offers the Optimal Mix of Wages and Benefits

question 41

Multiple Choice

A firm offers the optimal mix of wages and benefits.It is paying $5 an hour in wages and $3 in benefits.The minimum wage is then increased from $5.15 to $7 an hour.Assume all workers have the same utility curves (and have the usual shape) .If the firm continues to spend $8 an hour on workers,then

• A) workers will be better off.
• B) workers will be as well off as before.
• C) workers will be worse off.
• D) it is impossible to determine if workers are better or worse off without knowing if benefits are a normal or inferior good.

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Definitions:

Relationship with an Object

A form of attachment or interaction where an individual has significant emotional or psychological engagement with an inanimate object.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication systems, water, and power lines.

Cyberattack

A deliberate exploitation of computer systems, technology-dependent enterprises, and networks to compromise data, steal information, or disrupt digital operations.

Terrorists

Individuals or members of groups who use violence and intimidation, especially against civilians, in the pursuit of political aims.