In a market system, a firm's employees are typically shielded from business risk by
A)profit-sharing agreements.
B)wage contracts.
C)the Social Security program.
D)paid vacation leaves.

Question

Quizplus · Accepted Answer

Wage contracts typically provide employees with a fixed income, shielding them from the fluctuations in business performance or market conditions that the firm might face. This ensures that employees receive their agreed-upon wages regardless of the firm's financial health, unlike profit-sharing agreements where employee earnings fluctuate with the firm's profitability.

In a Market System, a Firm's Employees Are Typically Shielded