Question 1
Suppose that airline workers are laid off during a recession because of an unspoken agreement between airline workers and airline executives that wages will not be reduced. This example is consistent with the
◦ relative-wage explanation of unemployment.
◦ explicit contract explanation of unemployment.
◦ implicit contract explanation of unemployment.
◦ efficiency wage explanation of unemployment.
Question 2
The relative-wage explanation for the existence of downwardly sticky wages emphasizes
◦ unspoken agreements between workers and firms that firms will not cut wages.
◦ the incentive that firms may have to hold wages above the market clearing rate.
◦ employment contracts that stipulate workers' wages, usually for a period of one to three years.
◦ the contention that workers in one industry may be unwilling to accept a wage cut, unless they know that workers in other firms and industries are receiving similar cuts.
Relative Positional Terms
A Heliocentric Explanation of Retrograde Motion
Indicators of Relative Economic Well-Being
Breakdown of the Population by Schooling and Wages
Relative Humidity Changes at Constant Water-Vapor Content
Relative changes in distribution of sleep stages over the lifespan