Long-Term Contracts Are LESS Likely When

question 86

Multiple Choice

Long-term contracts are LESS likely when:

• A) specialized investments are important.
• B) hold-up is likely.
• C) the exchange environment is complex.
• D) workers are paid based on piece rates.

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Definitions:

Uberization

The transformation of traditional industries in the way that Uber has revolutionized the taxi business, emphasizing platforms that connect consumers directly with providers of goods or services.

Negatively Affects

To have an adverse impact on something, resulting in harm, deterioration, or reduction in quality or value.

Gig Economy

A labor market characterized by flexible, temporary, or freelance jobs, often involving connecting with clients or customers through an online platform.

Independent Contractors

Individuals or entities that perform work for another entity under a contractual agreement, but are not considered employees of that entity.