Considering the Third Assumption of Labor Market Theory,although Some Firms

question 47

Multiple Choice

Considering the third assumption of labor market theory,although some firms find lowering the job requirements and hiring less-skilled workers a better choice than raising wages,this choice incurs:

• A) lower marginal productivity.
• B) increased training costs.
• C) decreased marginal output.
• D) higher recruitment costs.

---

Definitions:

Future Profitability

Future profitability refers to an entity's potential to generate earnings over upcoming periods, indicating its financial prospects.

Horizontal Analysis

A financial analysis technique that compares historical financial information over a series of periods to identify trends and growth patterns.

Horizontal Analysis

Also known as trend analysis, it compares financial statements line items over several periods to identify changes and trends.