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:

Economic Problem

The fundamental challenge of efficiently allocating limited resources to satisfy unlimited wants and needs.

Limited Resources

The finite availability of resources, such as land, labor, and capital, which can restrict economic growth and development.

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.