In a Perfectly Competitive Economy,workers Are Well-Informed and Firms Can

question 14

Multiple Choice

In a perfectly competitive economy,workers are well-informed and firms can monitor workers.Suppose the government then passes a "Worker Privacy Act" that makes it very expensive to monitor workers.Which of the following is most likely to occur?

• A) Employment and wages will fall.
• B) Employment will fall, but the effect on wages is uncertain.
• C) Employment and wages will rise.
• D) Wages will rise, but the effect on employment is uncertain.

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Definitions:

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Extrajudicial killings, predominantly of African Americans, by hanging, historically prevalent in the Southern United States.

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