Under normal circumstances, the equilibrium compensation wage differential is the wage differential that exactly attracts the
A. marginal worker into the labor market.
B. average high-skilled worker into a low-skill job.
C. average worker into a regular job.
D. marginal worker into a risky job.
E. average worker into a less risky job.
Answer: D
You might also like to view...
Equilibrium is defined as a situation in which
A) neither buyers nor sellers want to change their behavior. B) no government regulations exist. C) demand curves are perfectly horizontal. D) suppliers will supply any amount that buyers wish to buy.
If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect b. long-run average costs must be decreasing c. the firm is experiencing diseconomies of scale d. the firm should increase production e. the firm is experiencing constant returns to scale
____________________ - a perfectly competitive price system will bring about an economically efficient allocation of resources
Fill in the blank(s) with the appropriate word(s).
A conglomerate merger takes place when
A. a firm acquires a competitor. B. similar firms agree to compete. C. a firm integrates its production backward toward its source of supply or forward in its marketing chain. D. a firm buys another firm unrelated to the original firm's business.