If all workers are homogeneous, all jobs are equally attractive to workers, and labor markets are perfectly competitive:
A. compensating differences would cause wage differentials.
B. noncompeting groups of workers would result in wage differentials.
C. all workers would receive the same wage rate.
D. worker mobility would occur such that wage differentials would widen.
Answer: C
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Suppose the federal excise tax rate on gasoline is increased by 50 percent. Which of the following is the most likely impact on the tax revenue derived from the federal gas tax?
a. Tax revenues will increase by less than 50 percent. b. Tax revenues will increase by 50 percent. c. Tax revenues will increase by more than 50 percent. d. The revenue from the gasoline tax will go to zero.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the surplus consumers receive when an $8 per unit price floor is imposed on the market.
A. $1. B. $5. C. $0. D. $3.
The Consumer Price Index measures
A. changes in the money supply. B. changes in all prices. C. changes in the price of a market basket of consumer goods. D. changes in the cost of consumer credit.
Monopolistically competitive firms engage in both price and quality competition.
Answer the following statement true (T) or false (F)