If an employer cannot distinguish the ability of workers, a separating equilibrium will result
Indicate whether the statement is true or false
False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.
Economics
You might also like to view...
An important function of the regional Federal Reserve Banks is
A) setting reserve requirements. B) clearing checks. C) determining monetary policy. D) setting margin requirements.
Economics
On the graph above, a permanent tax reduction, assuming that there is a permanent effect on aggregate supply, is likely to move the economy from point 1 to point ________
A) 2 B) 8 C) 6 D) 3
Economics