Why Is Hiring New Employees for Every Labor Shortage Not

question 83

Multiple Choice

Why is hiring new employees for every labor shortage not preferable?

• A) The process will lead to an artificial scarcity in the labor market.
• B) It would lead to reduced organizational control over the workers and process.
• C) Selecting new employees attracts too many discrimination law suits.
• D) If the shortage becomes a surplus, the organization may have to lay off employees.
• E) The process may result in reduced quality and may affect standardization.

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Definitions:

Unit Tax

A fixed tax amount applied to each unit of a good or service sold, affecting its selling price and demand.

Total Costs

The complete cost of producing a good or service, including both fixed and variable costs.

Demand Schedule

A table that lists the quantity of a good or service that consumers are willing to buy at different prices.

Marginal Cost

The expense associated with manufacturing an additional unit of a product or service.