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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
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.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
In defining social sciences which of the following phrases is the most appropriate?
A detailed investigation of a single social unit in order to study it in depth is______________?
People manipulate the social world which helps them to______________?
When firm build in Organizational slack they do this in order to ?
Which of the following is NOT a common reason for a merger?
Identify below those who are not stakeholders in a company ?