Why is there a difference in the strength of demand for labor?
What will be an ideal response?
The main explanation is the marginal revenue product of workers. Those workers with a high MRP will be greatly sought by employers and thus there will be a strong demand for the labor services of these workers. As a consequence they will be paid high wages. Those workers with a low MRP will not be often sought by employers, and thus there will be a weak demand for the labor services of these workers. As a consequence, they will not be highly paid.
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What is one difference between stocks and bonds?
A) Bonds are purchased at a bank, while stocks are purchased through the federal government. B) Bonds earn a higher rate of return than stocks. C) Stocks earn a higher rate of return than bonds. D) Stocks represent partial ownership in a firm, while bonds do not.
In forward transactions,
A) the exchange takes place at the same exchange rate as in the spot market. B) currencies are exchanged at a set date in the future. C) currencies may only be exchanged at rates set by governments well in advance. D) currency is bought and sold for delivery later that same day.
In a monopoly market, no dominant strategies are possible.
Answer the following statement true (T) or false (F)
Economists tend to see taxing an action that produces a negative externality as:
A. the second best solution possible, but often unattainable. B. the best solution possible and often the most attainable. C. the best solution possible, but often unattainable. D. the second best solution possible but one that is attainable.