Sometimes Wages Are Set Above the Equilibrium Level When

question 462

Multiple Choice

Sometimes wages are set above the equilibrium level when

• A)garbage collectors earn higher wages than secretaries due to compensating differentials.
• B)accountants earn more than dental technicians due to higher educational requirements.
• C)movie superstars earn more than talented plumbers.
• D)unions negotiate higher wages by threatening to strike.

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Definitions:

Divisional Performance

An assessment of the financial and operational effectiveness of a distinct business unit within a larger company.

Value Chain

A model that describes the full range of activities needed to create a product or service, from initial conception through the different phases of production to the delivery to consumers.

Leading Indicators

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future movements.

Lagging Indicators

Economic indicators that usually change after the economy as a whole does, thus confirming long-term trends.