Wages Tend to Be "Sticky" Because

question 134

Multiple Choice

Wages tend to be "sticky" because:

• A) contracts are often negotiated for long terms and cannot be easily changed.
• B) workers are less likely to work as hard if their pay may be cut due to market performance and not their performance.
• C) constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates.
• D) All of these are possible reasons why wages might be sticky.

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Limited Partner

An investor in a partnership who is not directly involved in its daily operations and whose liability is limited to the amount invested.

Capital Contribution

Funds or assets provided by owners or shareholders to increase a company's equity.

Partners' Interests

Refers to the stakes or shares that partners have in a partnership, encompassing financial investment, management decisions, and profit-sharing.

Provincial Legislation

Laws and regulations enacted by the legislative bodies of provinces or states within a country.