PLEASE ANSWER ASAP 14. Which of the following is best considered an implicit contract? A. A...
PLEASE ANSWER ASAP
14. Which of the following is best considered an implicit contract?
A. A union contract that specifies hourly wages and fringe benefits.
B. A union contract that specifies how overtime wages will be calculated.
C. An informal agreement between a firm and its employees to reduce hours of work for everyone a little bit during an economic contraction in order to prevent firing anyone.
D. An informal agreement between a firm and its employees to have the firm fire its most expensive workers first during an economic contraction.
E. A historical agreement between a firm and its employees that the firm pays workers based on a combination of age, experience and education.
Homework Answers
In the context of labor market, implicit contract refers to the informal employment agreement between the firm and employees which mention that how much labor supplied and how much wage paid by the firm under the different situation in future.
So the following is best considered an implicit contract.
An informal agreement between a firm and its employees to reduce hours of work for everyone a little bit during an economic contraction in order to prevent firing anyone.
Answer: Option (C)
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PLEASE ANSWER ASAP
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