Two jobs have different training requirements, and the job that requires more extensive training currently pays $20 more per hour. The jobs are equivalent in all other respects. If labor is migrating from the job with lower training requirements to the job with greater training requirements, then
a. the equilibrium compensating wage differential is more than $20 per hour
b. the equilibrium compensating wage differential equals $20 per hour
c. the wage rate will drop for the job with lower training requirements
d. the wage rate will drop for the job with greater training requirements
e. labor supply will increase for the job with lower training requirements
D
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Other things remaining the same, in the long run ________ in the quantity of money brings an equal percentage ________
A) a decrease; increase in the price level B) an increase; decrease in the price level C) a decrease; increase in the nominal interest rate D) a decrease; decrease in the price level E) an increase; increase in the real interest rate
Consider two oligopolistic industries selling the same product in different locations. In the first industry, firms always match price changes by any other firm in the industry
In the second industry, firms always ignore price changes by any other firm. Which of the following statements is true about these two industries, holding everything else constant? A) Market prices are likely to be the same in both markets because they are both oligopolistic markets. B) No conclusions can be drawn about the pricing behavior under these very different firm behaviors. C) Market prices are likely to be lower in the first industry where firms always match price changes by rival firms than in the second where firms ignore their rivals' price changes. D) Market prices are likely to be higher in the first industry in which firms always match price changes by rival firms than in the second where firms ignore their rivals' price changes.