What is a possible explanation as to why workers who have been on the job for a long time earn more than newly hired workers?
A. Workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity.
B. Workers in bad job matches tend to stay on the job longer.
C. Young workers are more productive than older workers.
D. U.S. law requires older workers to be paid more than younger workers.
E. The positive effects of general training on education erode over time.
Answer: A
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A) a single-payer system B) a universal health insurance system C) socialized medicine D) a private health care system
Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as
A) frictionally unemployed. B) cyclically unemployed. C) structurally unemployed. D) naturally unemployed.
A firm in monopolistic competition has some degree of price-setting power because
A) in the long run it earns a normal profit. B) it can never earn less than normal profit. C) the price it charges is never more than its marginal cost. D) if it raises its price, the quantity it can sell will not decrease to zero.
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A) by the entire labor force. B) by one worker or one hour of work. C) in the entire economy in one year. D) by all employed workers.