A Firm That Provides Specific Training to Its Workers

question 13

Multiple Choice

A firm that provides specific training to its workers:

• A)must reduce the wage during the training period,effectively forcing the worker to pay for the training
• B)may be prevented by the minimum wage from paying a wage above marginal revenue product during the posttraining period
• C)will likely provide more training to those who have less formal education
• D)has a stronger incentive to reduce employee turnover than firms that provide only general training

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Definitions:

Union Membership

The state of being a member of an organized group of workers who unite to make collective decisions regarding work conditions.

Product Inventory

The total amount of goods that a company holds in stock at a given time, encompassing raw materials, work-in-progress, and finished goods.

Foreign Competition

Competition that domestic companies face from abroad, from companies in other countries offering similar goods or services.

Union Membership

The status of being a member of a labor union, an organization aimed at representing the interests of employees in negotiations with employers.