Suggestions Advanced to Bring the Policy Frontier Closer to the Origin

question 13

Multiple Choice

Suggestions advanced to bring the policy frontier closer to the origin by improving the sensitivity of wages to conditions in the labor market include

• A) improvement in the system that tries to match individuals' skills with employers' needs.
• B) the elimination of government wage and price fixing through regulation.
• C) reform in the unemployment compensation system to remove some of the incentive to become or stay unemployed.
• D) integration of a scheme that would tie labor's compensation to a share of a firm's total revenue.
• E) all of the above.