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Statement 1: "Firm's hiring employees on the 'spot market' are likely to get employee that accumulate more firm specific human capital over the course of their careers than would be the case if they used the 'efficiency wage' system."
Statement 2: "Firm's using the 'internal labor market' approach to hiring often have employees that spend a lot of time with internal politics. Particularly, employees spend a lot of time trying to convince their managers that they deserve promotion. While this behavior occurs in most firms, it is more common in firms with 'internal labor markets'."
A. Both statements are false.
B. Both statements are true
C. Statement 1 is true, but 2 is false
D. Statement 2 is true, and 1 is false
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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