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Jake's Janitorial Service Employs 30 Minimum-Wage Workers

Question 205

Multiple Choice

Jake's Janitorial Service employs 30 minimum-wage workers. The janitorial industry in his market area employs around 6,000 minimum-wage workers. Other industries in the area employ almost 3 million minimum-wage workers. A change in government regulations regarding sanitation in the workplace causes a 3% increase in demand for janitorial workers. Given this information, it is likely that the janitorial industry is a(n) _____ industry because _____.


A) decreasing cost; it pays workers such low wages
B) increasing cost; its wage bill will rise as it employs more workers
C) constant cost; it employs a very small percentage of minimum-wage workers
D) circular cost; it hires workers that have the skills used in other industries

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