Basic Economic Theory Suggests That in the Long-Run, Competitive Forces

question 7

Multiple Choice

Basic economic theory suggests that in the long-run, competitive forces should eliminate pure inter-industry wage differences. If these differences exist, it could be explained by all of the following except:

• A) interindustrial migration of workers
• B) rent sharing between labour and capital
• C) non-pecuniary characteristics of an industry
• D) efficiency wages
• E) non-competitive factors

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Definitions:

Psychological Demands

The cognitive and emotional requirements or stressors associated with a job role.

Exhaustion

A state of extreme physical or mental fatigue, often resulting from stress or overwork.

Type A Personality

The Type A personality is characterized by being highly competitive and highly focused on work with few interests outside of work.

Dysfunctional Behavior

Actions by individuals within organizations that are detrimental to the organization's goals or to the well-being of its employees.