On the basis of knowledge obtained in his economics class, Ferris is likely to conclude that:
A)the job in Africa is likely to have a large amount of job satisfaction, so the large pool of applicants will likely lead to a low wage
B)the job cleaning motel rooms is likely to be disagreeable, so a small pool of applicants for the job will likely lead to a higher wage
C)the job that requires the most experience will likely have a higher wage
D)all of the above are true

Question

Quizplus · Accepted Answer

Each statement reflects basic economic principles regarding labor markets. A) suggests that a large supply of labor for a job that offers high satisfaction may lead to lower wages due to high competition. B) indicates that jobs considered less desirable may offer higher wages to attract workers, reflecting the concept of compensating differentials. C) implies that jobs requiring more experience or skills tend to pay higher wages due to the limited supply of qualified applicants.

On the Basis of Knowledge Obtained in His Economics Class