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

Adverse selection of wage cuts.

Explanation: Business owners and shareholders are almost totally focused on business growth, constantly monitoring running cost against revenue which may require drastic action such as reduction in salary of employees in a bid to arrest poor business condition. In such situation, employees start to weigh their options usually in search of a better job or staying put. At this point the adverse selection of wage cuts argues that, employees evaluate their competence, technicalities of their job role or duty and demand. With employees who are competent and understand the high demand for their job role opting to walk away due to higher chances of getting an alternative while those employees who think otherwise due to low level of attractiveness associated with their position are likely to stay put for fear of being out of job.

can you tell me where are the ansawer choices

answer; ( correlation );