One Way of Enforcing Incomplete Contracts with Employees Is for fiRms

question 1

Multiple Choice

One way of enforcing incomplete contracts with employees is for firms to _____.

• A) grant them permanent employment within the firm
• B) review their performance periodically
• C) implement a system of promotions based on seniority
• D) provide them with fringe benefits

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Definitions:

Protective Tariffs

These are taxes imposed on imported goods to protect domestic industries from foreign competition.

Canal System

A network of waterways constructed to allow for the transportation of goods and people, facilitating commerce and navigation.

Agricultural Inventions

Innovations and technological improvements that enhance agricultural efficiency, productivity, and sustainability.

Worst Recession

Typically refers to the most severe period of economic decline in history or within a specific timeline, characterized by significant reductions in GDP, high unemployment, and failing businesses.