Reasons for wages being set for long periods of time include which of the following?
A) Collective bargaining is costly.
B) Strikes or the threat of strikes are costly.
C) Careful review of workers' performance is costly.
D) The uncertainty of contingency clauses is costly.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the options listed (A through D) are reasons why wages might be set for long periods of time. Each of these factors involves a cost that employers and employees might prefer to avoid by agreeing on long-term wage rates.

Reasons for Wages Being Set for Long Periods of Time