When,because of hiring and firing costs,firms retain workers in a recession that they would otherwise lay off,there is said to be
A)labor hoarding.
B)a decline in capacity utilization.
C)voluntary unemployment.
D)involuntary unemployment.

Question

Quizplus · Accepted Answer

Labor hoarding occurs when firms retain workers during a recession or economic downturn, rather than laying them off. This is often due to the costs associated with hiring and firing employees, and the desire to maintain a skilled and experienced workforce for when the economy improves. Therefore, labor hoarding is the best choice for this scenario.

When,because of Hiring and Firing Costs,firms Retain Workers in a Recession