Scenario 19-2 Assume That the Labour Market for Mechanics Is Competitive and Competitive

question 38

Multiple Choice

Scenario 19-2
Assume that the labour market for mechanics is competitive and that it is differentiated into two groups: male and female.Assume that the mechanics in this market have vehicle repair ability regardless of whether they are male or female.Currently, the equilibrium wage in the female market is lower than in the male market.Further assume that the market for vehicle repair is competitive.
-Refer to Scenario 19-2.If some consumers in the market for vehicle repair have a strong preference for having their vehicle repaired by a male mechanic,what will result

• A)The difference in wages will eventually disappear since vehicle repair is a homogeneous good.
• B)Mechanic shops that hire male mechanics will be able to charge a higher price for vehicle repair.
• C)Mechanic shops that hire female mechanics will be much more profitable.
• D)Mechanic shops that hire male mechanics will be much more profitable.

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Definitions:

Consistent Over Time

A principle stating that certain attributes, behaviors, or patterns remain stable across different periods in an individual's life.

Social Roles

The parts individuals play as members of a social group, which meet the expectations, behaviors, and actions that society ascribes to them.

Cumulative Continuity Principle

The idea that personality becomes more stable and unchanging as a person gets older.

Rank-Order Consistency

The degree to which the relative ordering of individuals on a particular trait remains stable over time.