Which of the Following Occurs If a Firm Pays Workers

question 10

Multiple Choice

Which of the following occurs if a firm pays workers more than the market wage?

• A) Its application rate will be higher than usual.
• B) Its quit rate will be lower than usual.
• C) It will have a surplus of labor.
• D) All of above occur.

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Definitions:

Temperature

A measure of the average kinetic energy of the particles in a substance, indicating how hot or cold the substance is.

°C

A unit of temperature on the Celsius scale.

Atm

A unit of pressure, short for atmosphere, equal to the pressure at sea level or approximately 101.325 kPa.