An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
Correct answer: A. an implicit or social contract
- A. an implicit or social contract
- B. a relative-wage contract
- C. employment at will
- D. an explicit contract
Explanation
An implicit or social contract is an unspoken understanding that workers expect wages not to be reduced arbitrarily, even when no written promise exists. An explicit contract is written or formally stated, while employment at will concerns termination rights.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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