Workers May Display Irrationality in Labor Adjustments to Shocks If

question 159

Multiple Choice

Workers may display irrationality in labor adjustments to shocks if:

• A) union actions caused their pre-layoff wages to exceed market clearing wages.
• B) they practice intertemporal substitution.
• C) they voluntarily quit their jobs.
• D) they find new jobs that are higher paying.

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Definitions:

Mode

The value that appears most frequently in a data set, representing the highest peak in a distribution.

Extreme Values

The lowest or highest points in a data set, which are significant for analyzing behavior in statistical models, particularly in risk management and survival analysis.

Median

The middle value in a list of numbers arranged in ascending order, or the average of the two middle numbers if the list has an even number of items.

Central Location

A central or typical value for a probability distribution, often represented by the mean, median, or mode.