📚 Learning Guide
Demand and Supply in Labor Markets
medium

Which of the following factors most significantly influences the supply of labor in a market that offers extensive fringe benefits?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.