Define and illustrate “noncompeting groups” and “compensating differences.”
What will be an ideal response?
Noncompeting groups refer to labor force groups whose members do not qualify for the same occupations or jobs because of differences in inherent abilities or education and training or other obstacles that cannot be easily, if ever, overcome. For example, the female kindergarten teacher will not be eligible to compete for a job in professional football.
Compensating differences refer to the non monetary aspects of two jobs that cause different wages to be paid. The higher-paying job may be more hazardous, more stressful, or not as pleasant in other ways as the lower-paying job. The pleasant working conditions in the lower-paying job are the “compensating differences” assuming other things are equal. For example, a construction job and a secretarial job may require the same level of education, but the construction job will probably pay more than the secretarial job based on the differences in working conditions. These compensating differences explain at least part of the wage differential between these two occupations.
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Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods
How did an increase in consumer confidence change the final equilibrium point of the expansionary policy as shown in this graph?
a. Instead of reaching the target of E3 and at RGDP3, the final result is E4 at RGDPNR.
b. Instead of reaching the target of E2 and at RGDPNR, the final result is E4 at RGDPNR.
c. Instead of reaching the target of E2 and at RGDPNR, the final result is E3 at RGDP3.
d. Instead of reaching the target of E3 and at RGDP3, the final result is E1 at RGDP1.
The modification of manufacturing processes so as to reduce the resulting environmental damage is an endeavor that requires capital investment, labor inputs, and technology. What then follows from this statement?
A. Environmental damage is a regrettable but necessary side effect of economic growth. B. The way to reduce pollution is to educate people about its effects. C. The condition of the environment will be better in slower-growing countries. D. Economic growth can benefit the environment.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country A would be using resources efficiently if it produced:
A. (500 iPods, 150 tablets). B. (500 iPods, 250 tablets). C. (500 iPods, 200 tablets). D. (500 iPods, 100 tablets).