The Insider-Outsider Theory Implies That

question 65

Multiple Choice

The insider-outsider theory implies that:

• A) wages are flexible both upward and downward.
• B) unemployment quickly reduces market wages.
• C) agents pursue their own agendas,sometimes at the expense of principals.
• D) wages may be inflexible downward.

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Definitions:

Collective Bargaining Agreements

Legal contracts between employers and a group of employees aimed at establishing wages, working conditions, benefits, and other aspects of workers' compensation and rights for a specified period.

Fringe Benefits

Additional benefits supplementing an employee's salary, such as health insurance, pensions, and paid vacations.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.