What Is a Likely Explanation as to Why Workers Who

question 22

Multiple Choice

What is a likely explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

• A)Because workers in bad job matches tend to stay on the job longer.
• B)Because workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity.
• C)Because the positive effects of general training on education erode over time.
• D)Young workers are more productive than older workers.
• E)U.S. law requires older workers to be paid more than younger workers.

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Definitions:

Inverse Demand Function

A mathematical function that describes how the quantity demanded of a good or service varies with its price, expressed as price as a function of quantity demanded.

Inverse Supply

A concept in economics that represents the relationship between the price of a good and the quantity supplied by producers, but from the perspective of price as a function of quantity supplied.

Tax

A required monetary payment or different kind of tax levied on a taxpayer by government entities to finance government operations and public services.

Supply Function

A mathematical representation showing the relationship between the quantity of a good supplied by producers and various factors influencing that quantity, such as the good's price.