Fringe Benefits Will Tend to Be a Greater Proportion of Total

question 31

Multiple Choice

Fringe benefits will tend to be a greater proportion of total compensation,the:

• A)more income elastic are fringe benefits
• B)more they increase worker turnover
• C)lower the employer's share of the Social Security tax
• D)less there are economies of scale in purchasing fringe benefits

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Definitions:

Long Run

pertains to a time period in economics during which all factors of production and costs are variable, allowing for full adjustment to any change.

Diminishing Returns

A principle stating that as one input variable is increased, there will be a point at which the additions of output will begin to decrease, holding all other inputs constant.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm operates at higher levels of output.

Long Run

A period in economic theory during which all factors of production and costs are variable.