The fact that employment tends to be relatively high during the Christmas season and low during January is an example of:
A) intertemporal substitution.
B) labor adjustment costs.
C) time bunching.
D) irreversible investments.

Question

Quizplus · Accepted Answer

The fact that employment tends to be relatively high during the Christmas season and low during January is an example of time bunching. This refers to the phenomenon where labor demand and supply are concentrated in certain periods of time, leading to fluctuations in employment levels. This can be caused by seasonality, cyclical fluctuations, or other factors that affect the timing of employment demand and supply. Intertemporal substitution, labor adjustment costs, and irreversible investments are not directly related to this phenomenon.

The Fact That Employment Tends to Be Relatively High During