Which of These Is an Advantage of Long-Term Contracts in Resource

question 36

Multiple Choice

Which of these is an advantage of long-term contracts in resource markets?

• A)Long-term contracts decrease the duration of recessionary gaps.
• B)Long-term contracts reduce unemployment below its natural rate.
• C)Long-term contracts help avoid recession in an economy.
• D)Long-term contracts increase the flexibility of nominal wages.
• E)Long-term contracts reduce the average cost of negotiation.

---

Definitions:

Relative Efficiency

A measure comparing the precision of different estimators or statistical procedures under the same conditions.

Line-Angle Formula

A representation of molecular structure using lines for bonds between carbon atoms and angles to indicate changes in direction, omitting most hydrogen atoms.

Compounds

Substances formed from two or more elements that are chemically combined in fixed ratios.

Molecular Formula

A notation representing the number and type of atoms in a molecule without indicating how the atoms are bonded.