Figure 17.6.1
-The "no shirking constraint" (NSC) curve is:
A) downward-sloping to reflect the fact that at higher wages, firms will monitor workers more to see whether they are shirking.
B) downward-sloping to reflect the fact that shirking tends to be higher in lower-paying industries.
C) upward-sloping because at high levels of unemployment, workers will refrain from slacking without much other incentive.
D) upward-sloping because at high levels of employment, many "slacking" individuals have been hired.
E) vertical because the constraint represents the absolute amount of time a firm will tolerate workers' slacking without laying them off.

Question

Figure 17.6.1
-The "no shirking constraint" (NSC) curve is:
A) downward-sloping to reflect the fact that at higher wages, firms will monitor workers more to see whether they are shirking. 
B) downward-sloping to reflect the fact that shirking tends to be higher in lower-paying industries. 
C) upward-sloping because at high levels of unemployment, workers will refrain from slacking without much other incentive. 
D) upward-sloping because at high levels of employment, many "slacking" individuals have been hired. 
E) vertical because the constraint represents the absolute amount of time a firm will tolerate workers' slacking without laying them off.

Quizplus · Accepted Answer

The "no shirking constraint" (NSC) curve is upward-sloping because it posits that higher unemployment acts as a deterrent to shirking. Workers are less likely to slack off when they know it's harder to find another job, thus requiring less monitoring or incentive from the employer to ensure they're working diligently.

Figure 17.6.1 -The "No Shirking Constraint" (NSC) Curve Is