Suppose Laid-Off Workers and Other Qualified Unemployed Workers Offer to Work

question 101

Multiple Choice

Suppose laid-off workers and other qualified unemployed workers offer to work for less than the wages being paid existing employed workers, but employers do not hire these workers for fear that existing workers will refuse to cooperate with them.This situation best describes the

• A)efficiency wage theory.
• B)theory of compensating wage differentials.
• C)insider-outsider theory.
• D)rational expectations theory.

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