Label the scenarios according to whether each is an example of labor adjustment costs or not. Owing to its high budget deficit, the U.S. government decides to increase the payroll tax paid by employers. As a result, Acme Hammers Inc. decides to fire 20 employees. Max loses his job working as a carpenter, owing to a housing market crash. Max decides he will retrain as an air-conditioning serviceman. He has to take an expensive full-time course for two years to retrain. Emily loses her job working in textile manufacturing, owing to a decline in the sector. She signs up for a local state program to retrain textile manufacturers as workers in the high-growth wig industry. Kat loses her job at a pool-pump manufacturing facility due to a decline in the sales of these luxury items. She considers opening a coffee shop instead, but hesitates because her employers tell her that they will probably hire her back at the pool-pump facility again once sales pick up. Kat is uncertain about what to do, so she waits. Liam loses his job as a web designer when the Internet startup business he works at goes into liquidation. He spends two weeks looking and finds a similar web-design job locally at a more established company. Answer Bank an example of labor adjustment costs not an example of labor adjustment costs