Some Argue That According to Implicit Contract Theory,unemployment Is Really

question 51

Multiple Choice

Some argue that according to implicit contract theory,unemployment is really voluntary since

• A) workers enter freely into these agreements, recognizing that they are accepting the risk of unemployment.
• B) firms agree not to lay off anyone if the economy should turn down.
• C) under such contracts wages are tied to a firm's profits, minimizing involuntary unemployment.
• D) the importance of seniority in hiring practices is minimized.
• E) under such contracts wage rates are tied directly to the market demand and supply conditions.

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Definitions:

Unrealized Holding Loss

A decrease in the value of an investment that has not yet been sold for cash.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period.

Unrealized Loss

A reduction in value experienced by retaining an asset whose price has fallen, but has not been liquidated yet.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.