Question

1. 		paid the highest wages.
   		had the most applicants.
   		had the fewest applicants.
   		had the most job openings.

QUESTION 41

1. A self-enforcing employment contract may be difficult to achieve because

   		information in the labor market may be asymmetric.
   		employment contracts are implicit.
   		the terms of the employment contract are typically incomplete.
   		all of thees are correct.

QUESTION 42

1. Which of the following is an effect associated with a higher reservation wage?

   		Decreased duration of unemployment
   		Higher post-unemployment wages
   		More underemployment
   		All of these

Answer 1

41. Option D.

A self enforcing employment contracts are those contracts that are formed based on the agreements between the employers and employees.

These contracts may be typically incomplete and hence can lead to assymentric information within the market.

This can increase the risk of either parties cheating on the contract.

42. Option B.

Reservation wages are minimum wages that any employee agrees to accept from his employer.

When the reservation wages are high, then the post unemployment wages might also be higher.

This is due to the prolonged period of the unemployment which is faced by a worker.

answered by: anonymous