Assume That a Comparable Worth Law Is Passed That Determines

question 240

Multiple Choice

Assume that a comparable worth law is passed that determines that kindergarten teachers and bricklayers have comparable jobs; therefore, workers in both of these occupations should be paid the same wages.Assume that prior to the law, bricklayers were paid a higher wage than kindergarten teachers.Which of the following is the most likely result of the comparable worth law?

• A)The equilibrium wage will be the same for kindergarten teachers and bricklayers.
• B)Some former bricklayers will become kindergarten teachers and some former kindergarten teachers will become bricklayers.
• C)There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers.
• D)There will be surplus in the market for bricklayers and a shortage in the market for kindergarten teachers.

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Definitions:

Matching Principle

An accounting principle that recognizes expenses in the same period as the revenues they are related to are earned.