Exam 13: B: Labor Markets

The equilibrium compensating wage differential between two occupations in the same city is $10 per hour.Both occupations have equivalent training requirements.Shannon works in the higher-paying occupation and would have been willing to do so even if the compensating differential was $5 per hour.Therefore,

Suppose there is a semiskilled labor market and two different unskilled labor markets.Initially,all three markets are in competitive equilibrium.What would happen if the government imposed a minimum wage rate above the competitive equilibrium rate in one of the unskilled labor markets?

Wage differentials between groups can occur as a result of

Differences in marginal revenue products among workers can help explain the presence of wage differentials.

A difference in wage rates that results from a difference in working conditions

Wage rates may vary among labor markets for each of the following reasons,except one.Which is the exception?

-Figure 12-2 depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then

Jacob is torn between two jobs,grounds keeper and street repair.He is indifferent between the two jobs even though the street repair job pays $25 more per hour.This must mean that

Suppose that the cost of living is 25 percent higher in Chicago than in Indianapolis.If wages in Chicago are 10 percent higher on average than wages in Indianapolis,then eventually the labor supply will

One explanation for the existence of wage differentials in the long run is that

A labor market is divided into two segments.All workers have the same qualifications and find jobs in either segment equally attractive.Initially,both segments are in competitive equilibrium.Then the development of worker prejudice that reduces the hiring of minorities in one segment can lead to a

The Earned Income Tax Credit

If men,on average,earn 20 percent more than women in a particular occupation,

In the same city,one job currently pays $6 more per hour than another job.The two jobs have equivalent training requirements,but labor is not migrating toward the higher-paying occupation.Both markets are perfectly competitive.Which of the following conclusions is correct?

Which of the following is a reason why a particular job may pay a higher-than-average wage rate?

-Consider an economy in which all labor markets are perfectly competitive,all workers are equally able to do any job,and the nonwage attributes of all jobs are equally attractive to all workers.Figure 12-1 shows supply and demand curves in the labor markets for maintenance workers and machinists.In the long run,the hourly wage rate(s)

The minimum wage is constant across the United States.

Positions that involve a considerable amount of personal risk

Wage differentials exist in the long run because

Which of the following could help explain why professional football players have high salaries?