Long-Term Labour Contracts Are an Important Feature of ________ Theories

question 88

Multiple Choice

Long-term labour contracts are an important feature of ________ theories of the labour market.In contrast to a world with continuous bargaining of wages and employment,the existence of such contracts leads to a labour market in which involuntary unemployment is ________.

• A)non-market-clearing; possible
• B)non-market-clearing; impossible
• C)market-clearing; possible
• D)market-clearing; impossible
• E)market-clearing; always present

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Definitions:

Private Goods Consumption

Involves the use of goods that are excludable and rivalrous, meaning their consumption by one individual prevents another from consuming the same good.

Pareto Optimal

A condition where the distribution of resources cannot be changed without negatively impacting at least one person.

Private Goods Consumption

The act of consuming goods that are excludable and rivalrous in nature, meaning they can only be owned or consumed by one party and consumption by one person prevents consumption by another.

Pareto Optimal

A state of allocation of resources from which it is impossible to make any one individual better off without making at least one individual worse off.