An Employee Gains Work Experience by Staying in a Job

question 40

Multiple Choice

An employee gains work experience by staying in a job for a long period of time.An economist would expect this employee's wages to

• A) increase as experience is gained.
• B) decrease as experience is gained.
• C) increase,but then decrease over time as experience is gained.
• D) decrease,but then increase over time as experience is gained.
• E) stay the same since experience would have no effect on wages.

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Definitions:

Block Pricing

Practice of charging different prices for different quantities or “blocks” of a good.

Price Discrimination

Practice of charging different prices to different consumers for similar goods.

Electricity Sales

The volume of electrical energy sold, typically measured in kilowatt-hours (kWh), to end users or consumers.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.