Author Question: Suppose that due to a shortage of parts from its Asian suppliers, Apple experienced a 25% drop in ... (Read 46 times)

cmoore54 · **on:** Apr 19, 2019

Question 1

Suppose that during a recession, Whirlpool saw the demand for its major appliances fall by one-third. Even though the demand decreased, Whirlpool chose to maintain wages for its non-union employees. This is an example of

◦ a relative-wage contract.
◦ employment-at-will.
◦ an explicit contract not to cut wages.
◦ an implicit or social contract not to cut wages.

Question 2

Suppose that due to a shortage of parts from its Asian suppliers, Apple experienced a 25% drop in its sales. Even though its sales decreased, Apple did not cut the wages of its non-unionized workers. This is an example of

◦ an implicit or social contract not to cut wages.
◦ employment-at-will.
◦ poor management.
◦ an explicit contract not to cut wages.

chem1s3 · **Reply #1 on:** Apr 19, 2019

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