Losing a Job That Pays Especially Well Can Result in a Long

question 68

Multiple Choice

Losing a job that pays especially well can result in a long period of unemployment because:

• A) it may take the worker a while to come to terms with the fact that he will be forced to take a pay cut.
• B) high-paying jobs are easy to find.
• C) workers are always purely rational in their employment decisions.
• D) there are no adjustment costs for high-salary workers.