Asked by Adreonna Jenkins on Sep 28, 2024
Verified
According to economists, a key reason that strikes occur is that the parties to a dispute do not have perfect information.
Perfect Information
A scenario in economics where all parties have access to all relevant information about a transaction, market, or event before it occurs.
Strikes
Work stoppages initiated by employees as a form of protest against terms of employment or to demand better wages and conditions.
- Comprehend the economic and informational principles that explain the occurrence of strikes.
Verified Answer
DK
Deepak Khatkarabout 15 hours ago
Final Answer :
True
Explanation :
According to the theory of information asymmetry, strikes can occur when one party has more information than the other, which can lead to disputes over wages, working conditions, or other issues. When both parties have complete information and can bargain effectively, strikes are less likely to occur.
Learning Objectives
- Comprehend the economic and informational principles that explain the occurrence of strikes.
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