According to the Relative-Wage Explanation of Unemployment, Workers Will Be

question 285

Multiple Choice

According to the relative-wage explanation of unemployment, workers will be willing to accept wage cuts only if

• A) they know that unemployment is increasing in other industries.
• B) they can be convinced that they are overpaid relative to workers doing similar jobs at other firms.
• C) they know that workers in other firms and industries are receiving similar cuts.
• D) the economy is in a prolonged recession.

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Definitions:

Excess Supply

A scenario in which the supply of a good or service available from sellers surpasses what buyers want to purchase at the existing price.

Price Of Burritos

The amount of money required to purchase a burrito, often influenced by factors like ingredients cost, demand, and location.

Demand Shifts

Movements of the demand curve to the left or right, indicating a change in the quantity demanded at every price.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified period.