Multiple Choice
Two jobs have different training requirements,and the job that requires more extensive training currently pays $20 more per hour.The jobs are equivalent in all other respects.If labor is migrating from the job with lower training requirements to the job with greater training requirements,then
A) the equilibrium compensating wage differential is more than $20 per hour
B) the equilibrium compensating wage differential equals $20 per hour
C) the wage rate will drop for the job with lower training requirements
D) the wage rate will drop for the job with greater training requirements
E) labor supply will increase for the job with lower training requirements
Correct Answer:
Verified
Correct Answer:
Verified
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