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Unformatted text preview: ng the Existence of Unemployment Skill: Definition 7) The social contract explanation for the existence of downwardly sticky wages focuses on A) employment B) 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 that workers in industries are receiving similar cuts. C) unspoken D) agreements between workers and firms that firms will not cut wages. the incentive that firms have to hold wages above the market clearing rate. Answer: C Diff: 1 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 8) Intel major manufacturer of microchips, saw the demand for its product drop by 25%. Even though the Corporati demand for its product decreased, Intel did not cut the wages of its nonunionized workers. This is an on, a example of A) employment-at- will. B) an implicit or social contract not to cut wages. C) an explicit D) contract not t...
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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.
- Fall '13