Scenario: Color-Me-Green Inc.
Color-Me-Green Inc., a U.S.-based clothing merchant, has started doing business internationally. Having subsidiaries in several countries, the company must integrate financial information from all its subsidiaries with the U.S. home office at the end of the year.
-In Country B,Color-Me-Green is faced with a tight labor market and a low unemployment rate.This low unemployment rate will most likely result in ________.
A) lower interest rates
B) lower wages for workers
C) higher purchasing power
D) higher rate of inflation

Question

Quizplus · Accepted Answer

A tight labor market with low unemployment typically leads to higher wages as employers compete for a limited pool of workers, which can contribute to a higher rate of inflation.

Scenario: Color-Me-Green Inc. Color-Me-Green Inc., a U.S.-Based Clothing Merchant, Has Started Doing Business