Which One of the Following Statements Regarding the Rigidity of Employment

question 110

Multiple Choice

Which one of the following statements regarding the rigidity of employment index discussed in the text is NOT correct?

• A) The U.S. labor market experiences more rigidity, thus ranking higher, than most European countries.
• B) Countries that rank higher on the index tend to have more long-term unemployment.
• C) Countries that rank higher on the index tend to have less flexible and dynamic labor markets.
• D) The index ranks countries based on a summary of hiring and firing costs as well as the ease of work hour adjustments.

---

Definitions:

NPV Profile

A graph that depicts the relationship between a project's net present value (NPV) and various discount rates, helping to assess the project's risk and potential profitability.

Horizontal Axis

The x-axis in a graph or chart, representing a dependent variable in data comparison exercises.

Internal Rate

The Internal Rate of Return (IRR), a measure used to evaluate the profitability of potential investments.

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.