Suppose that tobacco farmers notice that the number of people turning up to claim summer jobs picking tobacco in the Connecticut River Valley has fallen by more than 50%.If it is their intention to hire as many people as before, their best course of action would be to:
A)do nothing because unemployed youth will eventually come asking for jobs at the minimum wage.
B)complain on local TV that parents are not providing enough encouragement to their children to go out and get a job and earn some money.
C)lower the price of tobacco so that lower wages would be economical.
D)offer higher wages to increase the opportunity cost of not working.
E)do none of the above because none of them would work.

Question

Quizplus · Accepted Answer

By offering higher wages, farmers can increase the opportunity cost of not working and attract more people to work on their farms. This is a more effective strategy than lowering the price of tobacco or waiting for unemployed youth to come asking for jobs. Complaining on local TV may not have any impact on the situation.

Suppose That Tobacco Farmers Notice That the Number of People