If Wages for a Certain Type of Labor Were Higher

question 51

Multiple Choice

If wages for a certain type of labor were higher in one market than in another,then

• A) the differential would exist into the long run.
• B) labor would move from the high wage market to the low wage market until wages were equal.
• C) labor would move from the low wage market to the high wage market until wages were equal.
• D) firms would not be acting as profit maximizers.

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Definitions:

Strong Unions

represent organizations that negotiate with employers on behalf of employees regarding wages, work conditions, and benefits.

Identical Preferences

The notion that two or more individuals value choices or outcomes in exactly the same way, having congruent likes and dislikes.

Productivity Factors

Elements that influence the efficiency and effectiveness with which resources are transformed into goods and services.

Highest Paying

Describing occupations or jobs that offer the most significant amount of monetary compensation.