Labor hoarding occurs when
A. because of hiring and firing costs, firms retain workers in a recession that they would otherwise lay off.
B. involuntary unemployment exceeds voluntary unemployment.
C. the unemployment rate exceeds the natural rate of unemployment.
D. firms keep good workers so other firms can't hire them.
Answer: A
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According to the Monetarists, the primary cause of inflation is:
a. large budget deficits. b. high taxes. c. rapid expansion of the money supply. d. government expenditures that are large relative to the size of the economy.
When a firm is earning economic profit, this indicates the firm is
a. increasing the value of the resources that it is using. b. reducing the value of the resources that it is using. c. supplying the market with a low quality product. d. creating less value for consumers than another firm that is currently earning losses.
A "company town" is one in which:
A. a single company directly regulates and monitors all town activity. B. a single company employs the great majority of people in a town and owns most structures in the town. C. the company directs most town business by assisting local government. D. all employees of a company live within its confines.
A tax that takes a larger proportion of income from low-income groups than from high-income groups is a:
A. stabilizing tax. B. regressive tax. C. proportional tax. D. progressive tax.