An incomes policy typically
A) requires that unions forgo wage increases.
B) gives particular firms and industries guidelines for decision making on wages and prices.
C) establishes worker retraining programs.
D) legislates penalties for compliance.
E) redistributes incomes in favor of the poor.

Question

Quizplus · Accepted Answer

An incomes policy is a government intervention that seeks to stabilize wages and prices by setting guidelines for decision making on wages and prices for particular firms or industries. It does not require unions to forgo wage increases or establish worker retraining programs, nor does it legislate penalties for compliance or redistribute incomes in favor of the poor.

An Incomes Policy Typically