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Question : The term "labor market flexibility" refers to:

Option 1: The ability of workers to switch jobs easily.

Option 2: The ease of hiring and firing employees.

Option 3: The availability of job opportunities in the market.

Option 4: The level of wages and benefits in the labor market.


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: The ease of hiring and firing employees.


Solution : The correct answer is (b) The ease of hiring and firing employees.

The term "labor market flexibility" refers to the degree to which employers can easily hire and fire workers based on their needs and market conditions. It encompasses factors such as employment protection laws, regulations governing dismissals, and the ease of contractual arrangements. A high level of labor market flexibility means that employers have more flexibility in adjusting their workforce, which can impact job creation, unemployment rates, and overall labor market dynamics.

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