Long-Term Contracts Are Desirable for Both Firms and Workers for Each

question 77

Multiple Choice

Long-term contracts are desirable for both firms and workers for each of the following reasons EXCEPT one. Which of the following does not explain the desirability of long-term contracts?

• A) wage negotiations are costly and time consuming on both sides
• B) contracts insulate workers from changing economic conditions such as decreases in aggregate demand
• C) the incidence of strikes decreases because the contracts are binding for three years
• D) contracts reduce uncertainty

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Definitions:

Relationship With Boss

The dynamic, interactions, and feelings between an employee and their direct supervisor or manager in the workplace.

Employee Empowerment

A management practice of sharing power and authority with employees, enabling them to take initiative and make decisions in their roles.

Strategic Contingency

An approach that emphasizes the importance of fitting an organization's strategies to its external environment, adapting to and preparing for unforeseen events.

Dominant Interest Groups

influential groups that have significant power or influence in shaping public policy, opinion, or decision-making processes.