Tara, the CEO of a corporation operating in a relatively poor country where wages are low, decides to raise the wages of her workers even though she faces an excess supply of labor. Her decision

Question

Quizplus · Accepted Answer

By raising wages and providing enough income for workers to eat a nutritious diet, Tara may increase their productivity, which could ultimately increase profits. However, increasing wages may not necessarily eliminate the excess supply of labor or prevent workers from shirking.

Tara, the CEO of a Corporation Operating in a Relatively