Question

Explain why full employment may be inconsistent with no shirking. Shirking may be likely with full employment because A. it may be inexpensive for employees to shirk. B. it may be possible for employers to pay high wages. C. it may be costless for employers to fire employees. D. it may not be possible for employees to have asymmetric information. E. it may be easy for employers to monitor workers.

Answer 1

Answer:

The correct answer to the following question will be Option A ( it may be inexpensive for employees to shirk).

Explanation:

• Shirking would be possible in economic growth since there are no unpaid employees throughout the situation of high employment, which implies that if an employee leaves his work, and then he will comfortably have the position, then it's less expensive whenever an employee shirks and even though he's terminated so that he can get the job soon.
• Thus it may well be assumed that even with maximum jobs, Shirking could be possible as shirking can indeed be affordable for workers.

Other choices have no relation with the specified scenario. So Choice A is indeed the right one.