Scenario 19-2
Travis, a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park.
-Refer to Scenario 19-2. Travis is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Travis concludes that
A)if the motel job requires some night shift work, wages will be lower than otherwise.
B)the job that is more fun will have a higher wage.
C)if the motel job doesn't require any special skills, the wage offer will be lower than otherwise.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Travis concludes that if the motel job doesn't require any special skills, the wage offer will be lower than otherwise. This is based on the principle of supply and demand in labor markets. Jobs that require specific skills or education will have a smaller supply of workers who can do them, and therefore employers will need to offer higher wages to attract them. Conversely, jobs that require few skills will have a larger supply of workers, and employers will not need to offer as high of a wage to attract workers. Therefore, Travis should consider the job with the disaster relief agency if it offers a higher wage, as it may require more specific skills or education.

Scenario 19-2 Travis, a Student at a Community College, Is Considering What