According to Basic Economic Theory, How Can One Assess Whether

question 3

Multiple Choice

According to basic economic theory, how can one assess whether workers in a certain industry are overpaid?

• A) By comparing the desirability or the undesirability of their working conditions with those of other workers.
• B) By comparing their wages to wage norms in other industries
• C) By comparing the educational attainment of the labour force with that of other workers
• D) By surveying the workers and asking them whether they think that their wages are too high
• E) By the existence of long queues of qualified workers whenever there are vacancies, and witnessing few quits