Genie Software Inc. has been operating in the country of Jamtland for almost a decade. The nation is currently experiencing an economic downturn. Which of the following is the most likely benefit of this economic condition for Genie Software Inc.? Genie will have better access to highly skilled human capital at a lower cost. Genie will have to expand its operations to meet the increasing consumer demand Genie will experience less competition from rival companies Genie will find it easier to raise prices to increase profits

Question

Business

Tianna Myers

6 July, 09:10

Genie Software Inc. has been operating in the country of Jamtland for almost a decade. The nation is currently experiencing an economic downturn. Which of the following is the most likely benefit of this economic condition for Genie Software Inc.? Genie will have better access to highly skilled human capital at a lower cost. Genie will have to expand its operations to meet the increasing consumer demand Genie will experience less competition from rival companies Genie will find it easier to raise prices to increase profits

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Mariana Cameron · Answer 1

Genie will have better access to highly skilled human capital at a lower cost.

Explanation:

During times of economic downturn, the rate of unemployment rises due to reduced production by firms in the economy. When the economy slows down, consumption drops, leading to reduced demand for goods and services. A reduction in demand forces organizations to cut down production, and consequently laying off workers.

Service and manufacturing industries do not create employment opportunities during economic downturns. As a result, college graduates cannot find jobs, which increases unemployment. An increase in unemployment and a low supply of jobs leads to a reduction in wage rates. Genie software will, therefore, be able to find highly qualified employees at a lower cost during times of economic downturns.