The relative wage coordination argument points out that:
a. workers who are confronted with the possibility of a wage cut will worry about finding themselves worse off—both in absolute terms and relative to other workers who have seen their wages preserved.
b. reducing wages for all workers during poor business conditions will cause the best workers with the best employment alternatives at other firms to leave, while the least attractive workers, with fewer employment alternatives, are more likely to stay.
c. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate.
d. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong.
a
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What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false
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