Consider two perfectly competitive labor markets for jobs that require different skills but are otherwise equivalent. One job currently pays a higher wage than the other job. This wage differential
a. cannot persist in the long run
b. can persist only if there are significant differences in the nonmonetary characteristics of the two jobs
c. can persist if workers in the lower-wage job lack the ability to gain the skills needed for the higher-wage job
d. will be eliminated as labor supply to the higher-wage job increases
e. is likely unrelated to different workers' endowments of talent and intelligence
C
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Which auctioned good is more likely to have different private values across potential bidders?
A) a truckload of sand B) a Monet painting C) a brand new car D) a gold bar
Why doesn't the age-earning cycle continuously increase until retirement age?
What will be an ideal response?
The fact that price and quantity demanded are related negatively illustrates the:
a. law of supply. b. law of quantity supply. c. law of demand. d. law of quantity demanded. e. point that some facts are unobservable.
What happens to the market price that buyers face as a result of taxation?
A. Taxation has no effect on price, only output. B. It is greater than before the tax was imposed. C. Taxation affects average cost only. D. It is less than before the tax was imposed.