An assembly plant closed down one of its lines for three months while new equipment is being installed. Some of the employees from this line were moved to other areas of the plant, while others were temporarily laid off. This is an example of a:
A) labor demand.
B) workforce plan.
C) labor supply.
D) labor surplus.
E) labor shortage.

Question

Quizplus · Accepted Answer

This situation is an example of a labor surplus, where there are more employees available than there are positions for them, leading to temporary layoffs.

An Assembly Plant Closed Down One of Its Lines for Three