If Labour Markets Determine Equilibrium Compensation, a Reduction in Employer

question 31

Multiple Choice

If labour markets determine equilibrium compensation, a reduction in employer contributions for health insurance should

• A)lead to an offsetting increase in wages.
• B)increase the supply of labour.
• C)decrease total worker compensation.
• D)decrease the demand for labour.

---

Definitions:

Nature

The innate qualities and genetic factors that influence a person's characteristics and behaviors, as opposed to environmental influences.

Nurture

The influence of external factors like environment, education, and care on an individual's development.

Plato

An ancient Greek philosopher, considered one of the pivotal figures in the development of Western philosophy, known for his works on ethics, epistemology, and metaphysics.

Aristotle

An ancient Greek philosopher and polymath whose writings covered a wide range of subjects, including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, and ethics.