Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The wage rate offered by employers
B
The level of education of the workforce
C
The availability of training programs
D
The attractiveness of fringe benefits such as health insurance and retirement plans
Understanding the Answer
Let's break down why this is correct
Answer
The supply of labor in a market that offers extensive fringe benefits is significantly influenced by the attractiveness of those benefits. When a company provides perks like health insurance, retirement plans, or paid time off, it makes the job more appealing to potential workers. This means that more people are likely to apply for the job, increasing the supply of labor. For example, if a tech company offers generous health benefits, it may attract more software engineers than a company that does not offer such perks. Therefore, the better the fringe benefits, the more workers will want to join the company, boosting the overall labor supply.
Detailed Explanation
Fringe benefits like health insurance and retirement plans make jobs more appealing. Other options are incorrect because Some might think that just the wage rate is enough to attract workers; It's easy to believe that education level is the main factor.
Key Concepts
factors affecting labor supply
fringe benefits
Topic
Demand and Supply in Labor Markets
Difficulty
medium level question
Cognitive Level
understand
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