Suppose That Mobility Costs Incurred by Workers Are Low

question 5

Multiple Choice

Suppose that mobility costs incurred by workers are low.In this circumstance,the best way to provide incentives for on-the-job training is for

• A) employees to bear all of the costs of the investment.
• B) employers and employees to share the costs of the investment.
• C) employers to force workers to accept a below market wage during the training period.
• D) employers to bear all of the costs of the investment.

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Definitions:

Consumer Demand

The desire and willingness of consumers to purchase goods and services at various price points.

Your Gut

Colloquial term referring to an individual's instinctive reaction or initial feelings about a decision or situation, often sans empirical evidence.

Inelastic Product

A product or service whose demand does not significantly change with variations in its price.

Substitutes

Products or services that can be used in place of another to satisfy consumer needs or desires.