Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?
A. Movement of labor from lower-wage to higher-wage jobs.
B. Readily available information about job opportunities and pay.
C. Principal-agent problems.
D. Discrimination.
Answer: D
You might also like to view...
In a noncooperative pegged situation, when the home country devalues in response to an external shock the:
A) foreign nation will also devalue, endangering the peg. B) home country suffers the entire burden. C) resulting depreciation causes a large shift in demand from the foreign nation to the home country, thereby exporting the recession to the foreign nation. D) nations agree to switch their peg to the U.S. dollar.
Which of the following statements is true if interest rates were zero?
A) The demand for bonds increases because bonds will be a more attractive alternative to money. B) People will hold their wealth in the form of money rather than in bonds. C) Bonds and money will become perfect substitutes since both are non-interest earning assets. D) The supply of bonds will increase.