Noah, the owner of an electronics factory, decides to raise the wages of his workers even though he faces an excess supply of labor. His decision
A)might increase profits if it attracts a better pool of workers to apply for his firm's jobs.
B)will increase the excess supply of labor.
C)may increase the quality of his work force.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Raising wages can attract more skilled workers (A), potentially increasing the quality of the workforce (C). However, it can also lead to more people wanting jobs than there are positions available, increasing the excess supply of labor (B).

Noah, the Owner of an Electronics Factory, Decides to Raise