Discuss the three reasons for equilibrium wage rate differences given in the text. Which one, or more, accounts for differences in wage rates between engineers and elementary school teachers? College professors and high school teachers? Basket-ball superstars and basketball coaches? Doctors and lawyers?
Answer to relevant QuestionsIn equilibrium, the interest rate equates the willingness of people to give up present goods in return for future goods and the ability of the economy to transform present goods into future goods. Explain.On average, television news reporters are better looking than newspaper reporters. Explain why this might be the case, relying on the discussion in Section 17.4 regarding wage differences. Explain why the Social Security program reduces before-tax wage rates and why this effect is greater over the long run than in the short run.Explain why, when all markets are competitive and in equilibrium, all three conditions for efficiency are satisfied. Does this result indicate that society’s welfare is maximized?The Copenhagen Accord of 2009 required most industrial nations to reduce their carbon dioxide and other greenhouse-gas emissions during the ensuing decade by 5 to 40 percent, depending on the country. The United States and ...
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