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Economics Mcqs
Q
The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
AA. 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
BB. Employment contracts that stipulate workersβ wages usually for a period of one to three years
CC. Unspoken agreements between workers and firms that firms will not cut wages
DD. The incentive that firms may have to hold wages above the market clearing rate
Correct Answer:
A. A. 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
