According to research undertaken by Truman Bewley of Yale University businesses are reluctant to cut wages during recessions even if they can do easily due to large scale unemployment. This reluctance to cut wages comes from upper management rather than the workers. Which of the following is not a reason for management's reluctant to cut wages?

Question

Quizplus · Accepted Answer

The reasons A, B, and C all explain why management might be reluctant to cut wages, focusing on the impact on worker morale, perceptions of fairness, and the potential for reduced productivity. However, D is incorrect because it suggests that layoffs are easier to implement than wage cuts, which does not align with the premise that management is reluctant to cut wages due to concerns about morale and productivity, not because of the difficulty in implementation or monitoring.

According to Research Undertaken by Truman Bewley of Yale University