The text refers to "labor adjustment costs" as the costs of:
A) making an educated workforce.
B) machines and equipment that replace the use of labor in production.
C) increasing a nation's workforce through bringing in migrant workers from overseas.
D) shifting workers from one sector of the economy to another sector.

Question

Quizplus · Accepted Answer

Labor adjustment costs refer to the costs incurred when shifting workers from one sector of the economy to another. These costs may include retraining expenses, severance packages, and unemployment benefits. Thus, option D is the correct choice. Option A refers to the cost of educating the workforce, while option B refers to the cost of machinery that replaces labor. Option C relates to the cost of bringing in migrant workers from overseas, which is not related to labor adjustment costs.

The Text Refers to "Labor Adjustment Costs" as the Costs