Question

Which of the following affects the wage a firm is willing to pay its workers?

Answer 1

Answer: E. . All of the above affect the wage a firm is willing to pay its workers

Explanation:

The wage a firm is willing to pay its workers is affected by:

• The productivity of workers.

• Consumer demand for the goods and/or services that the firm creates.

• The amount of fringe benefits the firm is required by law to pay.

• The level of payroll taxes the firm must pay.

It should be noted that when there's increase in productivity and rise in demand for a good by consumers, companies will be willing to pay more for their workers.

Likewise a decrease in tax and fringe benefits affects companies paying ability.