Which Statement by an Employer Is Consistent with the New

question 72

Multiple Choice

Which statement by an employer is consistent with the New Classical theory of unemployment?

• A)"I pay only enough to attract workers who are at the bottom of the pay scale."
• B)"Workers can always find jobs, if only they lower their expectations."
• C)"I pay more than the going rate so I can hire good workers."
• D)"I love it when inflation goes up because that drives down my wage costs."
• E)"Unions have only their current members' interests at heart."

---

Definitions:

Justification of Effort

The tendency to attribute a greater value to an outcome they had to put effort into achieving.

Liking

A feeling of affection or fondness towards someone or something.

Suffered

Experienced or been subjected to something bad or unpleasant.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.