There Are Two Types of Worker,high Ability and Low Ability

question 14

Multiple Choice

There are two types of worker,high ability and low ability.High ability workers generate gross profit of A on the job and low ability generate nothing.Education does not make workers more productive,but is costly to obtain (c_H for high ability workers and c_L for low ability ones) .Let w be the wage that all firms in the economy pay by regulatory mandate.Suppose the worker obtains utility given by the wage (if the worker is employed,0 if not) minus the cost of education (if any) .There is no disutility from work.Which condition is required if only the high ability type is to obtain an education in equilibrium?

• A) c_H < w < c_L..
• B) c_L < w < c_H.
• C) c_H < c_L < w.
• D) c_L < c_H < w.

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Definitions:

Hostile-Environment Sexual Harassment

Unwelcome sexual conduct that creates an intimidating, hostile, or offensive working environment.

Unwanted Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or gender, that is not desired or solicited.

Executive Exemption

A classification in labor law that exempts certain executives from overtime pay and minimum wage requirements.

Age Discrimination

The unfair treatment of individuals in the workplace based on their age, prohibited under various labor laws.