Americans Are Always Connected Today, Talking on the Phone at Home

question 32

Multiple Choice

Americans are always connected today, talking on the phone at home, while driving down the road and while shopping for groceries. But that wasn't always the case. In fact, it wasn't that long ago people had to go through an operator in order to get connected with the person they were trying to reach. How do cell phones impact the labor market for telephone operators?

• A) Decreased telephone operators' value of marginal product
• B) Increased the demand for telephone operators
• C) Increased the supply for telephone operators
• D) Decreased the marginal productivity of telephone operators

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Definitions:

Employer Cost

The total expense borne by an employer to employ workers, including salaries, benefits, and taxes.

Net Pay

The amount of money an employee takes home after deductions like taxes and retirement contributions are subtracted from their gross pay.

Payroll

The total amount paid to employees for services rendered during a specific period, including wages, salaries, bonuses, and deductions.

Individual Employee Earnings Record

An accounting document that summarizes the total amount of wages paid and the deductions for the calendar year. It aids in preparing governmental reports. A new record is prepared for each employee each year.