The “no shirking constraint” (NSC) curve is
A) downward-sloping to reflect the fact that at higher wages, firms will monitor workers more to see whether they are shirking.
B) downward-sloping to reflect the fact that shirking tends to be higher in lower-paying industries.
C) upward-sloping because at high levels of unemployment, workers will refrain from slacking without much other incentive.
D) upward-sloping because at high levels of employment, many “slacking” individuals have been hired.
E) vertical because the constraint represents the absolute amount of time a firm will tolerate workers’ slacking without laying them off.
ANSWER
C
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