Refer to the Diagram Below

question 48

Multiple Choice

refer to the diagram below. All points along the ray 0P reflect a constant proportion of wages to fringe benefits.






-Which one of the following events could not have caused a shift from isoprofit line 1 to line 2?

• A)The employer's share of the payroll tax rate has increased and the limits expanded
• B)Firms structured fringe benefits so as to increase worker productivity
• C)The government began to subject some fringe benefits to the personal income tax
• D)Insurance companies offered group discounts for medical and disability coverage

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Definitions:

Minimum Wage

The lowest remuneration that employers can legally pay their workers, intended to protect employees from unduly low pay.

Demand For Labor

The total amount of workers that employers are willing and able to hire at a given wage rate, in a given period.

Union Shop

A workplace where employees are not required to join the union in order to be hired but must join soon after they begin employment.

Negotiates

The process of discussing something to reach an agreement, especially in business or diplomacy.