If a school that offers higher wages to its staff is set up near a school that offers comparatively lower wages to its staff, what will be the effect on the wage rate and the staff strength in the school that pays lower wages?
What will be an ideal response?
In such a case, it is likely that some of the members of the staff will shift from the school paying lower wages to the school paying higher wages. This shift, in turn, will lead to an increase in wages and a smaller staff in the school paying lower wages.
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During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that
A) Africa, Asia, and Latin America have comparative advantage in coffee production. B) the United States has absolute advantage in coffee production. C) Africa, Asia, and Latin America have absolute advantage in coffee production. D) the United States has comparative advantage in coffee production.
If consumers spend their income either on gasoline or food, then an increase in the price of gasoline rotates the budget line
A) inward along the "food" axis. B) outward along the "food" axis. C) inward along the "gasoline" axis. D) outward along the "gasoline" axis.