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:

National Defense

The governmental provision of military forces and facilities intended to secure the nation against all potential enemies.

Government-Run

Entities, operations, or programs managed and operated by a government entity or its agents.

External Cost

Spillover effects that reduce the well-being of non-consenting parties.

Economic Efficiency

A condition in which resources are distributed to optimize the generation of goods and services.