Consider the Labor Market for Short-Order Cooks

question 175

Multiple Choice

Consider the labor market for short-order cooks. A labor-augmenting technological change such as a faster food processor will cause

• A)both equilibrium wages and equilibrium employment to increase.
• B)both equilibrium wages and equilibrium employment to decrease.
• C)equilibrium wages to increase and equilibrium employment to decrease.
• D)equilibrium wages to decrease and equilibrium employment to increase.

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Definitions:

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Self-Managed Teams

Groups of workers who are provided with the autonomy to plan, execute, and monitor their own tasks and performance.

Open-Book Management

A business strategy where financial and operational information is shared openly with employees to involve them in decision-making and to improve company performance.

Financial Statements

Formal records that outline the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.