Which of the Following Is Not a Reason Why Wages

question 114

Multiple Choice

Which of the following is not a reason why wages respond slowly to changes in output?

• A) Many labor contracts specify wages for up to three years.
• B) The process of wage setting in large corporations is slow moving.
• C) Frequent wage changes can reduce worker morale and reduce productivity.
• D) Firms benefit from having a reputation of paying stable wages.
• E) The labor supply and demand curves move rapidly to clear labor markets.

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Definitions:

Budget Balance

The financial position where total revenues are equal to total expenditures within a given period, resulting in neither a surplus nor a deficit.

Government Debt

The total amount of money that a government owes to creditors, which can result from borrowing to cover its expenses.

U.S. Government Bond

A debt security issued by the United States government to support government spending.

Municipal Bond

A bond issued by a local government or territory, or one of their agencies. It is generally used to finance public projects such as roads, schools, airports, and infrastructure-related repairs.