The Social Contract Explanation for the Existence of Downwardly Sticky

question 79

Multiple Choice

The social contract explanation for the existence of downwardly sticky wages focuses on

• A) employment contracts that stipulate workers' wages, usually for a period of one to three years.
• B) the contention that workers in one industry may be unwilling to accept a wage cut, unless they know that workers in other industries are receiving similar cuts.
• C) unspoken agreements between workers and firms that firms will not cut wages.
• D) the incentive that firms have to hold wages above the market clearing rate.

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Definitions:

Technological Tools

Devices or software designed to facilitate tasks, especially those related to information and communication technology.

Electronically Mediated Communication

Interpersonal communication that takes place via technology.

Smartphones

Mobile devices with advanced computing capabilities, including internet access and the ability to run various applications.

Deceptive Messages

Communications intended to mislead or falsely manipulate the perception of the receiver.