A labor market is divided into two segments. All workers have the same qualifications and find jobs in either segment equally attractive. Initially, both segments are in competitive equilibrium. Then the development of employer prejudice reduces employment of minorities in one segment. In the long run, there will likely be a change in
a. wage rates and the composition of the work force in both segments
b. neither wage rates nor the composition of the work force in either segments
c. wage rates, but not the composition of the work force, in both segments
d. the composition of the work force, but not wage rates, in both segments
e. the wage rate, but not the composition of work force, in the discriminating segment only
D
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Due to the impact of diminishing marginal returns, all costs are fixed in the long run
a. True b. False Indicate whether the statement is true or false
The general schooling model predicts that schooling increases
A. as both ability and the discount rates increase. B. as both ability and the discount rate decrease. C. as ability increase but as the discount rate decreases. D. as ability decreases but as the discount rate increases. E. when ability is held constant and the discount rate increases.
In a certain country, the labor force is 30 million and the unemployment rate is 5 percent. What is the amount of unemployed individuals in this country?
(A) 15,000 (B) 1.5 million (C) 15 million (D) 150,000
Suppose that the value of the short-run absolute elasticity of demand for a good is 0.9. Then, we know the long-run absolute price elasticity of demand will be
A. less than 0.9. B. inelastic. C. greater than 0.9. D. 0.