The _________________ argument points out that if an employer reacts to poor business conditions by reducing pay for all workers, then the best workers, with the best employment alternatives at other firms, are the most likely to leave and the least-attractive workers, with fewer employment alternatives, are more likely to stay.

A.efficiency wage theory
B.employer wage theory
C.equilibrium wage theory
D. adverse selection of wage cuts

ANSWER:

D. adverse selection of wage cuts