The Idea That Firms Retain Some Workers in a Recession,whom

question 34

Multiple Choice

The idea that firms retain some workers in a recession,whom they would otherwise lay off,to avoid the costs of hiring and training,is called

• A)the gift exchange motive.
• B)worker pooling.
• C)labour hoarding.
• D)union busting.

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Definitions:

Levy

A tax imposed by a government on goods, services, or financial transactions.

Consumption

The use of goods and services by households, which represents the final phase in the economic chain of activities.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Income

Money received on a regular basis from work, property, business, or investments.