Suppose All Workers in a Certain Labor Market Are of Either

question 12

Multiple Choice

Suppose all workers in a certain labor market are of either high quality or low quality.Potential employers value a high-quality worker at $15,000 per month and a low-quality worker at $7,500 per month.The monthly supply of high-quality workers is Q^s_H = 0.04(W - 1,500) and the supply of low-quality workers is Q^s_L = 0.08(W - 1,500) ,where W is the monthly wage.If workers' abilities are not observable to employers,what is the equilibrium wage?

• A) $5,000
• B) $7,500
• C) $10,000
• D) $12,500

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Definitions:

Sleep Cycle

A progression through various stages of NREM and REM sleep that repeats several times throughout a typical night's rest.

Theta Waves

Brainwave patterns associated with deep relaxation, meditation, and the early stages of sleep, typically in the frequency range of 4–7 Hz.

EEGs

A test that detects electrical activity in the brain using small, metal discs attached to the scalp.

Paradoxical Sleep

Another term for REM (Rapid Eye Movement) sleep, a phase of sleep characterized by rapid eye movements, more dreaming, and bodily movement.