The more difficult it is for a firm to adjust its labor force in the face of economic fluctuation, the more likely the firm is to hire new workers.

Question

Quizplus · Accepted Answer

The statement is false. If it's difficult for a firm to adjust its labor force, it's more likely that the firm will keep its existing workers even in the face of economic fluctuations, rather than incur the costs of hiring and training new ones.

The More Difficult It Is for a Firm to Adjust