Which of the following is not a source of downward wage rigidity? A. Unions appear to...

Which of the following is not a source of downward wage rigidity?

A. Unions appear to prefer layoffs to wage reductions, as the former affects only workers without seniority, while the latter would affect all workers.

B. Firms appear to prefer layoffs to wage reductions, as the former allows the firm to "hoard" workers in whom they have invested specific training.

C. implicit contracts between employers and their workers

D. Layoffs are discouraged due to the method used to finance unemployment compensation insurance.

Expert Solution

B. Firms appear to prefer layoffs to wage reductions, as the former allows the firm to "hoard" workers in whom they have invested specific training.

Explanation: Firms do not prefer lay off for this reason as this would actually make firms lose human resource other than hoarding it.

Rahul Sunny answered 2 years ago

Which of the following is a source of cash that would appear on the statement of...

Which of the following is a source of cash that would appear on the statement of cash flows? decrease in notes payable increase in gross fixed assets increase in accrued expenses

Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their...

Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their probability of being correct and important.

Discuss the implications of job search theory for the following phenomena: Unemployment duration Wage rigidity over...

Discuss the implications of job search theory for the following phenomena: Unemployment duration Wage rigidity over the business cycle

Typically, professions represented by labor unions demand a higher wage. Discuss how labor unions impact wage...

Typically, professions represented by labor unions demand a higher wage. Discuss how labor unions impact wage rates.

Provide ecomoni explanation on the rationale of wage rigidity as explained by Keynes (1947) in his...

Provide ecomoni explanation on the rationale of wage rigidity as explained by Keynes (1947) in his general theory on a 4 page paper.

In Latin America, high unemployment and underemployment maybe attributed to structural rigidity in wage adjustments and...

In Latin America, high unemployment and underemployment maybe attributed to structural rigidity in wage adjustments and job security. (please expand on this/ (social policy))

Which of the following items appear in the current account and which appear in the capital...

Which of the following items appear in the current account and which appear in the capital and financial account? a. U.S. purchases of assets abroad: current account/capital and finance account b. U.S. services imports: current account/capital and finance account c. Foreign purchases of assets in the United States: current account/capital and finance account d. U.S. goods exports: current account/capital and finance account e. U.S. net investment income: current account/capital and finance account

Minimum wage laws, labor unions, and the efficiency wage theory may explain the presence of above-equilibrium...

Minimum wage laws, labor unions, and the efficiency wage theory may explain the presence of above-equilibrium wages in a free market (Mankiw, 2018, pp. 390-391). Explain how each phenomenon leads to above-equilibrium wages. Note that the description provided on the textbook is rather short. You may need to conduct additional research by going back to some previous chapters or conducting research outside our textbook. Do you best to apply each of situations you may be familiar with or may have...

Suppose that the mythical country of Moricana has a downward rigid wage. Moricana is in a...

Suppose that the mythical country of Moricana has a downward rigid wage. Moricana is in a recession; capacity utilization in the economy is at an all-time low, and surveys show that firms do not expect economic conditions to improve in the coming year. a. Firms in the country are cutting back on capital spending and investment. Use a graph to show how this would affect the labor demand curve (ignore the effects of multipliers). b. How would the economy move along the...

Which of the following is NOT an example of a transaction that would appear in the...

Which of the following is NOT an example of a transaction that would appear in the financing section of the statement of cash flows? Select one: a. Selling shares of common stock b. None of the above c. Payment of interest expense on note d. Repayment of principal amount of long-term note e. Purchasing treasury stock

Question