Differences in the wage earnings and its impact over the allocation of resources.

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Answer 1

Question

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

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11:44 Fri Apr 4 Would+You+Take+the+Bird+in+the+Hand Would You Take the Bird in the Hand, or a 75% Chance at the Two in the Bush? BY VIRGINIA POSTREL WOULD you rather have $1,000 for sure or a 90 percent chance of $5,000? A guaranteed $1,000 or a 75 percent chance of $4,000? In economic theory, questions like these have no right or wrong answers. Even if a gamble is mathematically more valuable a 75 percent chance of $4,000 has an expected value of $3,000, for instance someone may still prefer a sure thing. People have different tastes for risk, just as they have different tastes for ice cream or paint colors. The same is true for waiting: Would you rather have $400 now or $100 every year for 10 years? How about $3,400 this month or $3,800 next month? Different people will answer differently. Economists generally accept those differences without further explanation, while decision researchers tend to focus on average behavior. In decision research, individual differences "are regarded…

Answer 2

Question

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

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Answer 3

Question

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

Answer 6

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

Answer 7

Chapter 26, Problem 1CQ

To determine

Differences in the wage earnings and its impact over the allocation of resources.

Answer 8

Expert Solution & Answer

Explanation of Solution

Wage is the income paid to the laborers for using their skill for the process of production. The wages of the laborers are determined on the basis of their productivity, which is known as the efficiency wage condition. When the workers are similar in their skills, they would be paid equal wages. Similarly, the differences in jobs cause the differences in their wages. When the jobs are very attractive, the wage will be higher and vice versa. The mobility of the workers also plays an important role in determining the wages of the workers. When there is perfect mobility in the labor market, there will be equal wages provided to the workers. Thus, the absence of these three conditions causes differences in the wages of the workers.

When there is a difference in the wages, there will be difference in the allocative role. This is because the higher wages make people to invest in the human development, such as the investment in education and health, which makes the laborer to be more productive and skilled than those without them. The unfavorable jobs or the conditions of the place of work will be accompanied with an attractive wage to attract more workers toward the labor allocation there. Thus, the wage differences play an important role in the allocation of resources of production.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Production: Production is a process that involves the transformation of raw materials into final goods and services that can satisfy the needs of the consumers in a market.

Answer 12

Ch. 26 - Prob. 1CQ Ch. 26 - Prob. 2CQ Ch. 26 - Prob. 3CQ Ch. 26 - Prob. 4CQ Ch. 26 - Prob. 5CQ Ch. 26 - Prob. 6CQ Ch. 26 - Prob. 7CQ Ch. 26 - Prob. 8CQ Ch. 26 - Prob. 9CQ Ch. 26 - Prob. 10CQ

Differences in the wage earnings and its impact over the allocation of resources.

Differences in the wage earnings and its impact over the allocation of resources.

Explanation of Solution

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Chapter 26 Solutions