Which of the Following Is a Market Imperfection That Might

question 56

Multiple Choice

Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?

• A) movement of labor from lower-wage to higher-wage jobs
• B) readily available information about job opportunities and pay
• C) principal-agent problems
• D) discrimination

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Definitions:

Restraint of Trade

Legal restrictions imposed on businesses to prevent unfair competition, monopolies, or practices harmful to the market.

Sale of Business

The process of transferring ownership of a business entity from one party to another.

Competing

Engaging in an effort to win or succeed against others, often in a business, sporting, or academic context.

Public Policy

Principles and standards considered to be in the interest of the public and used as a guide in legislative, judicial, or administrative actions.