For Wage Rates to Be the Same in Various Labor

question 33

Multiple Choice

For wage rates to be the same in various labor markets, four conditions must exist: (1) demand for every type of labor must be __________; (2) no special __________ aspects to any job; (3) all labor is ultimately __________ and can __________ be trained for different types of employment; and (4) all labor is mobile at __________.

• A)heterogeneous; money; homogeneous; costlessly; minimum cost
• B)the same; nonpecuniary; homogeneous; costlessly; zero cost
• C)high; training; homogeneous; costlessly; zero cost
• D)high; nonpecuniary; heterogeneous; costlessly; minimum cost

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Definitions:

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.

C + I

A formula component in macroeconomics representing total private consumption (C) plus total private investment (I).

MPS

The marginal propensity to save, which is the fraction of an additional unit of income that is saved rather than spent.