The relative wage coordination argument points out that:
a. workers who are confronted with the possibility of a wage cut will worry about finding themselves worse off—both in absolute terms and relative to other workers who have seen their wages preserved.
b. reducing wages for all workers during poor business conditions will cause the best workers with the best employment alternatives at other firms to leave, while the least attractive workers, with fewer employment alternatives, are more likely to stay.
c. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate.
d. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong.
a
You might also like to view...
When a firm exits a competitive price-searcher market, the individual demand curves faced by all remaining firms in that market will
a. shift in a direction that is unpredictable without further information. b. shift to the right. c. shift to the left. d. remain unchanged. It is the supply curve that will shift.
Programs such as Social Security and Medicare
A. have to be re-authorized every year and can be cut by the President without congressional approval. B. can be cut by the President without congressional approval. C. have to be re-authorized every year. D. do not require re-authorization.