Which of the following is a reason for the existence of sticky wages?
A) Cutting wages during an economic downturn is illegal.
B) Some wages are set by contract.
C) Increasing wages means reduced profits during economic expansions.
D) By law, if one worker's wages are changed, all workers' wages must be changed.
B
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Refer to Figure 21-13. What is the consumer’s marginal rate of substitution as she moves from A to B?
The short run is the time period during which a firm has at least one input constraint
Indicate whether the statement is true or false
Which of the following is the best example of a fixed cost for a business?
a. the insurance payment for the protection of a building owned by the firm b. shipping charges for the delivery of products c. managerial salaries paid d. the total of medical insurance premiums on the firm's employees
What does each party in international trade anticipate from the exchange?
a. reinforcement of its cultural heritage b. an imbalance in the trade relationship c. improvement in its economic welfare d. deception on the part of its trading partners