Question

Which of the following is required for all workers to earn identical wages in the long run? Check all that apply. All jobs require the performance of similar types of tasks. All workers have equal ability and can be trained to do different types of employment at minimum cost. Workers can move from one labor market to another at zero cost. All workers must have a bachelor's degree.

Answer 1

Answer:

All workers have equal ability and can be trained to do different types of employment at minimum cost. Workers can move from one labor market to another at zero cost. All workers must have a bachelor's degree.

Explanation:

In the conventional perfectly competitive model of the labor market, wage-setting is individualistic in the sense that identical workers should receive identical wages in different firms and different workers should receive different wages in the same firm.

Answer 2

Question:

Which of the following is required for all workers to earn identical wages in the long run? Check all that apply.

A) All jobs require the performance of similar types of tasks.

B) All workers have equal ability and can be trained to do different types of employment at minimum cost.

C) Workers can move from one labor market to another at zero cost.

D) All workers must have a bachelor's degree.

Answer:

The correct answers are:  A & C

Explanation:

This is an Economics question which speaks to the subject of Labor Markets.

A perfectly competitive labor market is one where:

• There are many firms
• Perfect information about wages and job conditions.
• Firms are offering identical jobs
• Workers can move from one labor market to another at zero cost.
• Many workers with the same skills

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