Workers prefer layoffs to wage reductions during economic downturns because
A) layoffs benefit workers more than the firms.
B) workers try to provide firms with incentives to report true economic conditions.
C) firms will keep workers even during economic downturns to avoid more costs.
D) there is symmetric information.
B
Economics
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At full employment,
A) the inflation rate is zero. B) the inflation rate must equal the natural unemployment rate. C) the unemployment rate is zero. D) real GDP exceeds potential GDP. E) the unemployment rate is equal to the natural unemployment rate.
Economics
Which of the following did not contribute to the failing of Freddie Mac and Freddie Mae?
A) Problems with adverse selection. B) Problems with moral hazard. C) Weak regulatory oversight. D) Unethical accounting practices.
Economics