Suppose Wages for Construction Workers Are Higher in Hawaii Than

question 178

Multiple Choice

Suppose wages for construction workers are higher in Hawaii than in Florida. This could be because the

• A)moving costs between Florida and Hawaii are so high that construction workers in Florida do not relocate to Hawaii.
• B)product price of what construction workers in Hawaii produce is higher than the product price of what construction workers in Florida produce and the moving costs between Florida and Hawaii are zero.
• C)moving costs between Florida and Hawaii are zero.
• D)marginal physical product of construction workers in Hawaii is higher than the marginal physical product of construction workers in Florida and the moving costs between Florida and Hawaii are zero.

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Definitions:

Trickle-up Theory

A theory suggesting that trends and innovations are initiated from the lower social classes and then adopted by the upper classes.

Trickle-down Theories

Theories suggesting that trends, behaviors, or innovations initiated by higher socioeconomic groups gradually spread to lower socioeconomic groups.

Trickle-down Theory

An economic hypothesis that argues benefits for the wealthy will "trickle down" to everyone else, improving the economy as a whole.

Reward-rejection

A psychological response where an individual rejects a reward, possibly due to feeling it is unearned or fearing its implications.