Workers and Firms Prefer to Enter into Long-Term Contracts Because

question 50

Multiple Choice

Workers and firms prefer to enter into long-term contracts because

• A) workers assume the rate of inflation is going to increase whereas employers believe it is likely to fall.
• B) wage negotiations are costly to each side in terms of both time and money.
• C) such contracts allow enough time for all labor markets to clear.
• D) seniority is more easily acquired by both employers and employees under such agreements.
• E) wages, profits, and employment are less affected by changes in aggregate demand under these conditions.

Understand the outcomes of market disequilibrium.

Appreciate the role and impact of price ceilings and price floors.

Identify methods of rationing and their effects on the market.

Examine the effects of changes in production costs and consumer preferences on the market.

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Definitions:

Unrepresented Interests

Groups or issues that lack sufficient advocacy or recognition within political, legal, or social systems, often leading to limited or non-existent policy consideration.

Political Scientists

Scholars who study the theory and practice of politics, governmental structure, and the analysis of political activity and behavior.

Constitutional Means

Methods and techniques established within the framework of a constitution to achieve political, legal, or governmental objectives.

Ideal Of Pluralism

The belief or doctrine that a society should accommodate and embrace a diversity of cultural, religious, and ethnic backgrounds within its political and social institutions.