Why doesn't the marginal worker hired earn economic rent in a competitive labor market?
A) His reservation wage is less than the wage.
B) His reservation wage is greater than the wage.
C) His reservation wage is equal to the wage.
D) He is paid a wage that is lower than the others.
C
You might also like to view...
If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:
A. will be the same in both countries. B. will be higher in the country with more leisure time. C. will be higher in the country with less leisure time. D. will be greater than the level of economic well being in each country.
What was not one of the problems of the Articles of Confederation?
a. It did not allow the federal government to tax. b. It did not give the federal government sufficient power to define international relationships. c. It could not keep the states together as a political union. d. It did not give the federal government the sole right to mint coins.
If bicycles can be sold for $100 each, and the marginal product of hiring a third worker is 2 bicycles, then the marginal revenue product from hiring that worker is
a. 2 bicycles b. $200 c. $100 d. $1,000 e. $300
Which of the following statements is true? Other things equal, the demand for labor will be less elastic the:
A. easier it is to substitute capital for labor. B. greater the elasticity of resource supply. C. greater the elasticity of product demand. D. smaller the ratio of labor costs to total costs.