What Happens When Society Deems a Particular Business Action as Wrong

question 15

Multiple Choice

What happens when society deems a particular business action as wrong or unethical? ​

• A)​Legislation usually follows.
• B)​The guilty individual is jailed.
• C)​Self-regulation is deemed a failure.
• D)​The company goes bankrupt.
• E)​Fines automatically follow.

Understand the concept and implications of efficiency wages in the labor market.

Analyze the effects of labor unions on wages and employment levels.

Identify and explain different forms of labor market discrimination.

Understand the role of minimum wage laws and their impact on the labor market.

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Definitions:

Payroll Tax

Financial demands on employers and employees, typically derived as a percentage of the remunerations paid to staff.

Labor Supply

The total hours that workers are willing to work at a given wage rate, influenced by various factors like salaries, working conditions, and demographics.

Excess Burden

Excess burden is the economic loss society incurs as a result of tax inefficiencies, beyond the tax itself, often due to distorted economic behaviors.

Economic Decisions

Choices made by individuals, households, or governments regarding allocation of resources and distribution of goods and services.