The More Difficult It Is for a Firm to Adjust

question 75

True/False

The more difficult it is for a firm to adjust its labor force in the face of economic fluctuation, the more likely the firm is to hire new workers.

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Definitions:

Bargaining Power

The capacity of one party in a negotiation to influence the terms in their favor due to their position or resources.

Strike Activity

Refers to the actions taken by workers, typically organized by labor unions, to cease work in order to protest for better wages, working conditions, or other labor-related issues.

Permanent Strike Replacements

Workers hired to permanently take the positions of striking workers, a tactic sometimes used by employers during labor disputes.

Lockout

An action taken by employers to prevent employees from entering the workplace, typically during a labor dispute to pressurize the labor side.