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

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

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Definitions:

Breach of Contract

A breach of contract occurs when one party fails to fulfill their obligations under the contract, leading to potential legal consequences or the right for the other party to seek damages.

Reasonable

A standard of fairness, practicality, and moderation, often used to judge actions or decisions in legal contexts.

Illegal Term

A provision in a contract or agreement that is not enforceable by law because it violates legal statutes or principles.

Sale of Business

The process of transferring ownership of a business from one party to another.