C socialcontract explanationofunemployment d

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e of Unemployment Skill: Conceptual AACSB: Reflective Thinking 11) The relative-wage explanation for the existence of downwardly sticky wages emphasizes A) unspoken B) agreements between workers and firms that firms will not cut wages. the incentive C) that firms may have to hold wages above the market clearing rate. employment D) contracts that stipulate workers' wages, usually for a period of one to three years. the contention one industry may be unwilling to accept a wage cut, unless they know that workers in other firms that workers in and industries are receiving similar cuts. Answer: D Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 12) Accordin g to the relative-wage explanation of unemployment, workers will be willing to accept wage cuts only if A) they know that unemployment is increasing in other industries. B) they can be C) convinced that they are overpaid relative to workers doing similar jobs at other firms. they know th...
View Full Document

This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.

Ask a homework question - tutors are online