Prostitution Is Unskilled Labor with No Barriers to Entry

question 41

Essay

Prostitution is unskilled labor with no barriers to entry.Prostitution also diminishes a prostitute's chance for marriage.So why do prostitutes earn relatively high wages.Why? (HINT: the Indifference Principle).

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Definitions:

Accounting Identity

A fundamental equation that must always hold true, often without regard to time or specific instances, in accounting and economics.

Government Purchases

Expenditures by the government sector for goods and services that are consumed within the current period.

Closed Economy

An economic system that does not interact with other economies in terms of international trade or financial transactions.

Public Saving

The difference between tax revenues and government expenditures, typically representing the amount of surplus funds the government has.