Suppose That Air Traffic Controllers, Whose Wages Have Been Locked

question 102

Multiple Choice

Suppose that air traffic controllers, whose wages have been locked into place by a two-year contract, are laid off during a recession. This example is consistent with the

• A) social contract explanation of unemployment.
• B) explicit contract explanation of unemployment.
• C) efficiency wage explanation of unemployment.
• D) relative-wage explanation of unemployment.

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Definitions:

Supremacy Clause

A provision in the U.S. Constitution declaring that federal law prevails over state law when there is a conflict between them.

Federal System

A system of government in which power is divided between a central authority and constituent political units (such as states or provinces), allowing for a balance of power.

Uniform Social Services

Social welfare and public services that are standardized and equally accessible to all members of a community or country.

Political Dissatisfaction

A state of discontent with the political system or political leaders, often resulting from perceived failures or unmet expectations.