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Unformatted text preview: at workers in other firms and industries are receiving similar cuts. D) the economy is in a prolonged recession. Answer: C Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 13) Workers textile industry are laid off during a recession because they are unwilling to accept a wage cut, unless in the they know that workers in other industries are receiving similar cuts. This example is consistent with the A) relative-wage explanation of unemployment. B) explicit contract explanation of unemployment. C) social contract explanation of unemployment. D) efficiency wage explanation of unemployment. Answer: A Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 14) The percentage of workers whose wages are set by explicit contracts falls. This should A) make it more B) difficult for the labor market to reach an equilibrium after a change in the demand for labor. make it easier for the labor market to reach an equilibrium after a change in the demand...
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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