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Which of the Following Is a Source of Wage Stickiness

question 166

Multiple Choice

Which of the following is a source of wage stickiness?
I. fixed wage contracts
II. minimum wage laws
III. workers and firms want to avoid complexity of negotiating contracts frequently


Definitions:

Centralized

A system or organization where decision-making and authority are concentrated in a single point or location, typically at the top.

Decentralized

The distribution of decision-making governance closer to the level of individual operations or regions, as opposed to being concentrated at a central point of command.

M-Form

Stands for the Multidivisional Form, a type of organizational structure where a company is divided into semi-autonomous units or divisions, each with its own responsibilities for profit and loss.

Bureaucracy

An organizational structure characterized by standardized procedures, hierarchy of authority, and formalized rules, often in governmental or large organizations.

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