Higher Input Costs

question 122

Multiple Choice

Higher input costs

• A) reduce profits.
• B) increase profits.
• C) shift the demand curve.
• D) always happen during a recession.
• E) provide an incentive to hire more workers.

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Definitions:

Market Level

The average or prevailing price of goods, services, or wages within a specific market or industry.

Employer

An individual or entity that hires and pays for the services of workers.

Employees

Individuals who are hired by a firm or organization to perform specific tasks and duties in exchange for compensation.

Market Pay Policy

A compensation strategy based on the prevailing wage rates within an industry or geographic location for similar jobs, aiming to attract and retain talent by offering competitive salaries.