What are four market imperfections that prevent workers from moving from their current jobs to take higher-paying jobs?
What will be an ideal response?
First, workers may lack information about available jobs, wage rates, and opportunities in other geographic areas or regions. Second, workers may not want to leave their geographic area because of the disruption to lives that such a change entails. Moving may result in loss of ties with friends, family, and community. Third, there are union and government restraints that limit the mobility of workers. If a worker wants to move from one area to another, they may have to be a member of a union to work in the new area. There can also be new licensing requirements that restrict the mobility of workers. Fourth, discrimination in the job market may restrict the level of wages and crowd certain groups into lower-paying occupations.
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When shortages or surpluses persist for any extended period of time, they
A) are a consequence of failure to allow prices to perform their rationing function. B) are evidence of an underlying imbalance between demand and supply. C) are evidence of goods being scarce. D) indicate that there is no price that will clear the market in the case of some goods.
The marginal cost curve intersects:
A) the total cost curve at its minimum. B) the average fixed cost curve at its maximum. C) the average fixed cost curve at its minimum. D) both the average variable cost curve and the average total cost curve at their minimum.