B flexiblewages c efficiency d wages minimum wages

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Unformatted text preview: for labor. C) have no impact on the movement of the labor market toward equilibrium after a change in the demand for labor. D) cause the labor market to always be at an equilibrium, even if there is a change in the demand for labor. Answer: B Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Analytic 15) Even though explicit contracts may lead to layoffs during recessions, explicit contracts may still be efficient because such contracts A) guarantee that only the least-productive workers will be laid off. B) reduce C) unemployment effects. reduce D) negotiation costs. will equitably spread the layoffs among junior and senior workers. Answer: C Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 16) Suppose traffic controllers, whose wages have been locked into place by a two-year contract, are laid off during a that air recession. This example is consistent with the A) social contract explanation of unemployment. B) explicit contract explanation of unemployment. C) efficiency wag...
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