- Posts: 465
- Joined: Mar 20, 2012
- Sat Sep 15, 2012 8:56 pm
#5390
Hi,
Why is the answer C and not B?
Why does paying the lowest wages equal having the lowest operating expenses? There are other things involved in operating expense besides wages.That's why I thought B was right.
And why does paying family members low wages itself reduce family's prosperity? That keeps the money inside the family - it's just a redistribution of the wages. If they pay someone outside the family, it automatically lowers their prosperity because they're allowing some of their money leave the family. That's why I thought this answer was wrong. Can you please explain this question to me?
Thanks,
Moshe
Why is the answer C and not B?
Why does paying the lowest wages equal having the lowest operating expenses? There are other things involved in operating expense besides wages.That's why I thought B was right.
And why does paying family members low wages itself reduce family's prosperity? That keeps the money inside the family - it's just a redistribution of the wages. If they pay someone outside the family, it automatically lowers their prosperity because they're allowing some of their money leave the family. That's why I thought this answer was wrong. Can you please explain this question to me?
Thanks,
Moshe
