Which term describes the group of workers who can be mobilized during boom times and shed during downturns?

Which term describes the group of workers who can be mobilized during boom times and shed during downturns?

• A. Lifestyle
• B. Racism
• C. Reserve army of labour
• D. Prejudice

Answer: (C)

Think about how labor markets adjust to business cycles. In capitalist economies there’s a pool of workers who are not employed or are underemployed most of the time but can be drawn upon when production expands and then released when it contracts. This group is known as the reserve army of labour. They can be mobilized during boom times to take on extra work and then shed during downturns to cut costs and prevent wage inflation. This concept helps explain why unemployment persists in cycles and how employers use labor flexibility to adjust quickly. The other terms don't fit this idea: lifestyle describes patterns of living, while racism and prejudice refer to attitudes or discriminatory beliefs; none describe a contingent workforce that can be rapidly mobilized and released in response to economic changes.

Think about how labor markets adjust to business cycles. In capitalist economies there’s a pool of workers who are not employed or are underemployed most of the time but can be drawn upon when production expands and then released when it contracts. This group is known as the reserve army of labour. They can be mobilized during boom times to take on extra work and then shed during downturns to cut costs and prevent wage inflation. This concept helps explain why unemployment persists in cycles and how employers use labor flexibility to adjust quickly.

The other terms don't fit this idea: lifestyle describes patterns of living, while racism and prejudice refer to attitudes or discriminatory beliefs; none describe a contingent workforce that can be rapidly mobilized and released in response to economic changes.