When a firm makes verbal promises about future working conditions, benefits and raises, and promotions, it is offering:
A) an implicit labor contract.
B) an explicit labor contract.
C) a human capital contract.
D) compensating differential.

Question

Quizplus · Accepted Answer

When a firm makes verbal promises about future working conditions, benefits and raises, and promotions, it is offering an implicit labor contract. This contract is not clearly defined or written down, but both parties understand the implicit terms and conditions of the employment.

When a Firm Makes Verbal Promises About Future Working Conditions