The relative-wage explanation for the existence of downwardly sticky wages emphasizes
A. employment contracts that stipulate workers' wages, usually for a period of one to three years.
B. the contention that workers in one industry may be unwilling to accept a wage cut, unless they know that workers in other firms and industries are receiving similar cuts.
C. the incentive that firms may have to hold wages above the market clearing rate.
D. unspoken agreements between workers and firms that firms will not cut wages.
Answer: B
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Refer to Figure 13-15 to answer the following questions
a. What is the profit-maximizing output level? b. What is the profit-maximizing price? c. What is the average total cost at the profit-maximizing output level? d. What area represents the firm's profit? e. At which output level are economies of scale exhausted? f. Does this graph most likely represent the long run or the short run? Why?
Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. Which type of investor would prefer an investment with a guaranteed return of 5%?
A) risk loving investor B) risk neutral investor C) risk averse investor D) risk is not relevant in this example
Total utility is determined by:
a. multiplying the quantity purchased of a good by the price of the good. b. finding the additional utility gained from consuming one more unit of a product. c. summing the marginal utilities for each successive units of a product consumed. d. summing the number of units of a good consumed. e. dividing the marginal utility derived from consuming a good by its price.
Which of the following is a resource as the term is used by economists?
A. land B. labor C. buildings D. all of the above