Which statement is true about labor markets?
A) Organizations compete to sell labor in the labor market.
B) Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
C) Changes in the CPI do not affect the labor market.
D) Cost-of-living considerations have little impact on labor-market rates.
E) An organization's competitors in labor markets only include companies with different products.

Question

Quizplus · Accepted Answer

Competition for labor in the labor market establishes the minimum an organization must pay to hire an employee for a particular job. This is based on supply and demand, where if there is high demand for a particular skillset or job title, the organization will need to offer competitive salaries and benefits packages to attract and retain talent.

Which Statement Is True About Labor Markets