Temporary layoffs are common in the United States, especially among workers who are heavily invested with specific training. Why?
A. Workers without specific training are never hired in the first place.
B. Specific training deteriorates quickly, so a laid-off worker with specific training is not valuable to any firm.
C. The laid-off worker with specific training is more valuable to the firm that laid her off than she is to any other firm. Thus, it is in the worker's best interest to remain unemployed until recalled to work at her original firm.
D. Unemployment benefits are tied to specific training.
E. Workers with specific training know they do not need to work hard when employed.
Answer: C
You might also like to view...
With a reserve ratio of 10 percent, the maximum potential money multiplier is
A) 1. B) 5. C) 10. D) 100.
When a banker accepts a deposit of $1,000 in cash and puts $200 aside as required reserves and then makes a loan of $800 to a new borrower, this set of transactions
a. decreases the money supply by $1,000. b. decreases the money supply by $200. c. does not change the money supply. d. increases the money supply by $200. e. increases the money supply by $800.
Which of the following is most likely to help promote the efficient use of resources and rapid economic growth?
a. high tariffs and imposition of other trade restrictions b. high marginal tax rates c. an open and competitive capital market d. high rates of inflation
Water, when it is not tradeable among current and potential users, is often kept that way
a. by governments demanding tight control over who gets the water. b. by nature, as water cannot be easily moved from place to place in large quantities. c. to protect fish and other wildlife, rather than for any other reason. d. by monopoly owners in the private sector.