3. If labour market contracts are incomplete it implies that a) Firms need only pay reservation wages. b) Workers are lazy. c) Employed workers earn a rent in addition to their reservation wage. d) Unemployed workers could gaif employment by offering to work at wages below their reservation wage.

3. If labour market contracts are incomplete it implies that a) Firms need only pay reservation wages. b) Workers are lazy. c) Employed workers earn a rent in addition to their reservation wage. d) Unemployed workers could gaif employment by offering to work at wages below their reservation wage.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.3P

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Question

3. If labour market contracts are incomplete it implies that
a) Firms need only pay reservation wages.
b) Workers are lazy.
c) Employed workers earn a rent in addition to their reservation wage.
d) Unemployed workers could gain employment by offering to work at wages below
their reservation wage.

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