Losing a Job That Pays Especially Well Can Result in a Long

question 68

Multiple Choice

Losing a job that pays especially well can result in a long period of unemployment because:

• A) it may take the worker a while to come to terms with the fact that he will be forced to take a pay cut.
• B) high-paying jobs are easy to find.
• C) workers are always purely rational in their employment decisions.
• D) there are no adjustment costs for high-salary workers.

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Definitions:

Yearly Salary

The total amount of money earned by an individual from their job or profession over the course of a year.

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Subjective Well-Being

A person's evaluation of their personal happiness and contentment with life.

Unsuccessful Businessman

An individual who has not achieved success in their business ventures, often facing financial loss.