Question

Which of the following are the sources of wage inflexibility?

Check all that apply.

The legal minimum wage

Hourly employee scheduling

Insider-outsider relationships

Part-time employment

Efficiency wages

Wage contracts

Answer 1

The legal minimum wage, Insider-outsider relationships, Efficiency wages, and Wage contracts.

Step-by-step explanation:

Wage inflexibility dictates the failure of money during the time of unemployment as the market structure for the employment becomes rigidity highly. It includes the sources of national minimum wages, collective bargaining from the unions, efficiency wages, and wage contracts. The respective Government sets the legal minimum wages. Therefore, part-time employment and hourly employee scheduling will not be the sources of wage rigidity.