Which of the following affects the wage a firm is willing to pay its workers?
A)The productivity of workers.
B)Consumer demand for the goods and/or services that the firm creates.
C)The amount of fringe benefits the firm is required by law to pay.
D)The level of payroll taxes the firm must pay.
E)All of the above affect the wage a firm is willing to pay its workers.

Question

Quizplus · Accepted Answer

All of the above factors affect the wage a firm is willing to pay its workers. The productivity of workers influences the value they create for the firm, and the firm's ability to pay higher wages. Consumer demand for the goods and/or services that the firm creates influences the revenue generated by the firm, which then affects its ability to pay its workers. The amount of fringe benefits the firm is required by law to pay and the level of payroll taxes it must pay have a direct impact on operating costs, which in turn impact the wages the firm is willing to pay. Therefore, all of the factors listed above affect the wage a firm is willing to pay its workers.

Which of the Following Affects the Wage a Firm Is