Why Is It Advantageous to Employers to Have a Large

question 47

Multiple Choice

Why is it advantageous to employers to have a large number of marginal people (uneducated and/or undocumented) in the work force?

• A) Because desperate people will work for very low wages, thus depressing wages for all workers
• B) To have someone to blame for industrial accidents
• C) To have someone to blame for unionization efforts, thus depressing interest in unions among more educated workers
• D) Because employers want the opportunity to improve society by raising people out of poverty

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Definitions:

Fixed Cost

Expenses that do not change with the level of goods or services produced over a short period, such as rent or salaries.

Attractive Location

A site or place deemed desirable for setting up businesses or operations due to factors such as low costs, strategic position, or access to resources.

Fixed Cost

Expenses that do not change with the level of goods or services produced, such as rent, salaries, or loan payments.

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials or labor costs.