Which of the following statements is true about labor markets?
A) Organizations compete to sell labor in the labor market.
B) Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
C) Changes in the CPI do not affect the labor market.
D) Cost-of-living considerations have little impact on labor-market rates.
E) An organization's competitors in labor markets only include companies with different products.

Question

Quizplus · Accepted Answer

Competition for labor among organizations helps establish the minimum amount an organization must pay to attract and retain employees for a particular job. The cost-of-living considerations and changes in the Consumer Price Index (CPI) can both impact labor-market rates as they affect the purchasing power of wages. The organization's competitors in labor markets can include all companies that are looking for similar skills and talents regardless of their product offerings. Therefore, option B is the only true statement about labor markets.

Which of the Following Statements Is True About Labor Markets