The wage of a known high-quality worker, wh, is $10,000. The wage for a known low-quality worker, wl, is $4,000. The share of the work force that is of high quality, s, is 0.5. For what value of the cost, c, of a college education that serves only as a signal of a high-quality worker does a pooling equilibrium exist?
A) c > $3,000
B) c < $3,000
C) c < $1,000
D) c = $2,500
A
You might also like to view...
The real wage is the:
A. the ratio of wage of unskilled workers to the wage of skilled workers. B. marginal product of labor. C. supply of labor. D. price of labor.
Refer to the table above. Based on this information, we can conclude that Laborland has a ________
A) current account surplus B) current account deficit C) trade surplus D) budget deficit
A specific tax on sellers will
A) shift the demand curve to the right. B) shift the demand curve to the left. C) shift the supply curve to the right. D) shift the supply curve to the left.
Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased. c. your real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased. d. your real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.