Sarah, a university student, is trying to consider what she should do for summer employment.Two recruiters show up at her university in search of summer workers.Recruiter A is looking for lifeguards to patrol the beach.Recruiter B is looking for workers to staff positions at a summer youth camp.On the basis of knowledge obtained in her economics class, Sarah is likely to conclude that:
A)the large pool of applicants for the lifeguard job will likely lead to a high wage
B)the small pool of applicants for the summer camp job will likely lead to a high wage
C)the lifeguard job is likely to be more fun than the summer camp job
D)all of the above are true

Question

Quizplus · Accepted Answer

Sarah is likely to conclude that the small pool of applicants for the summer camp job will lead to a high wage because of the basic supply and demand concept. With a small supply of workers, employers will typically offer higher wages to attract workers. The large pool of applicants for the lifeguard job will likely lead to a saturated supply of workers, therefore, the wage may not be as high as the summer camp job. The statement about the lifeguard job being more fun is subjective and cannot be determined by economic principles.

Sarah, a University Student, Is Trying to Consider What She