If an employer cannot distinguish the ability of workers, a separating equilibrium will result
Indicate whether the statement is true or false
False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.
You might also like to view...
What are the pros and cons of a competitive market in the long run?
The equilibrium price of labor is called:
A. the wage. B. income, plus benefits. C. opportunity cost. D. the leisure trade-off.
If the Fed wants to stimulate aggregate demand it should _____ bonds to _____ the money supply.
A. buy; increase B. sell; increase C. buy; decrease D. sell; decrease
In the U.S. economy, sole proprietorships account for over half the firms, but corporations account for over half of total sales revenue.
Answer the following statement true (T) or false (F)