Losing a job that pays especially well can result in a long period of unemployment because:
A) it may take the worker a while to come to terms with the fact that he will be forced to take a pay cut.
B) high-paying jobs are easy to find.
C) workers are always purely rational in their employment decisions.
D) there are no adjustment costs for high-salary workers.

Question

Quizplus · Accepted Answer

Losing a job that pays especially well can result in a long period of unemployment because the worker may struggle to come to terms with the reduction in pay and may hold out for a similar high-paying job, which may take time to find. This is especially true if the high-paying job was specialized and there are few other employers in the same field offering similar salaries.

Losing a Job That Pays Especially Well Can Result in a Long