Assuming Workers and Jobs Are Identical,if Information Is Perfect and Job

question 9

Multiple Choice

Assuming workers and jobs are identical,if information is perfect and job search and migration are costless,then:

• A)labor may or may not flow among employers
• B)labor will flow among employers until all wages are equal
• C)labor will flow among employers until all economic profits are zero,but wages may be unequal
• D)all firms will hire the same number of workers in equilibrium and pay them all the same wage

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Definitions:

Test Statistic

A statistic (a function of the data) used in statistical hypothesis testing to decide whether to reject the null hypothesis.

P-value Approach

A method in hypothesis testing that uses the p-value, the probability of obtaining test results at least as extreme as the observed, under the assumption the null hypothesis is true.

Critical Values

Specific points along the scale of a test statistic that delineate the acceptance or rejection of the null hypothesis.

Two-Tailed Hypothesis

A statistical test where the area of interest lies in both tails of the distribution, testing for the possibility of a relationship in both directions.