Suppose a Restaurant Moves to Another City and Its Manager

question 36

Multiple Choice

Suppose a restaurant moves to another city and its manager asks the restaurant's two cooks to move there as well.Cook A is single and has no children to support.Cook B has a family with five children in grades K-8.Which of the following is the most likely outcome?

• A) Cook A is more likely to move because of a lower labor adjustment cost.
• B) Cook B is more likely to move because of a lower labor adjustment cost.
• C) Cook A is more likely to move because of a higher labor adjustment cost.
• D) Cook B is more likely to move because of a higher labor adjustment cost.

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Definitions:

Diversification

Diversification is the strategy of entering into new markets or creating new products to spread risk and reduce dependence on a single source of income or success.

Command Economy

An economic system wherein the government or central authority makes all decisions regarding the production and distribution of goods and services.

Global South

A term referring to countries primarily located in the Southern Hemisphere, often focusing on regions in Africa, Latin America, Asia, and the Middle East, highlighting developmental and economic disparities.

Newly Industrialized Country

A term referring to countries that are undergoing rapid industrialization and showing signs of transitioning from developing to developed status.