Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It allows for quicker adaptation to economic changes.
B
It increases unemployment rates.
C
It leads to more government intervention.
D
It has no impact on economic performance.
Understanding the Answer
Let's break down why this is correct
Answer
Labor market flexibility refers to how easily workers can move between jobs or how easily companies can hire and fire employees. When the labor market is flexible, it allows businesses to quickly adapt to changes in the economy, such as new technologies or shifts in consumer demand. For example, if a factory needs to upgrade its machines and requires workers with different skills, a flexible labor market makes it easier to find and train new workers. This adaptability helps the economy recover from downturns more quickly and can lead to overall growth. In the long run, a flexible labor market can create a more resilient economy that responds effectively to changes and challenges.
Detailed Explanation
When the labor market is flexible, workers can quickly move to new jobs. Other options are incorrect because Some might think flexibility causes more people to lose jobs; It's a common belief that flexibility means the government gets more involved.
Key Concepts
Labor market flexibility
Topic
Long Run Economic Adjustment
Difficulty
easy level question
Cognitive Level
understand
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