Suggestions advanced to bring the policy frontier closer to the origin by improving the sensitivity of wages to conditions in the labor market include
A) improvement in the system that tries to match individuals' skills with employers' needs.
B) the elimination of government wage and price fixing through regulation.
C) reform in the unemployment compensation system to remove some of the incentive to become or stay unemployed.
D) integration of a scheme that would tie labor's compensation to a share of a firm's total revenue.
E) all of the above.

Question

Quizplus · Accepted Answer

All the suggestions listed aim to make wages more responsive to labor market conditions. Improving skill matching, eliminating wage and price fixing, reforming unemployment compensation, and tying wages to firm revenue can all help align wages more closely with market supply and demand.

Suggestions Advanced to Bring the Policy Frontier Closer to the Origin