# The relative-wage explanation for the existence of downwardly sticky wages emphasizes ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: The relative-wage explanation for the existence of downwardly sticky wages emphasizes ? Correct Answer: A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

Direct Answer & Quick Reference

The correct option is **A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts**.

A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts **(Correct Answer)**

B. employment contracts that stipulate workers’ wages usually for a period of one to three years

C. unspoken agreements between workers and firms that firms will not cut wages

D. the incentive that firms may have to hold wages above the market clearing rate

✨ Explain with AI

Verified Key: A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
Solved by 4,823+ students

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