Which of the Following Is a Market Imperfection That Might

question 160

Multiple Choice

Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?

• A) Movement of labor from lower-wage to higher-wage jobs.
• B) Readily available information about job opportunities and pay.
• C) Principal-agent problems.
• D) Discrimination.

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Definitions:

Legal Position

The status, rights, and obligations of an entity or individual according to the law.

Defences

Defences in legal terms refer to arguments and evidence presented by a defendant in a lawsuit to demonstrate why they should not be held liable for the claims brought against them.

Legally Binding Contract

An agreement between parties that has legal force and is enforceable by law, with defined obligations and rights.

Reasonable Expectations

The anticipation of certain outcomes based on typical circumstances, often legally considered in contractual agreements.