The existence of noncompeting groups and other occupational differences in labor markets means that

a. Homogeneous, competitive labor markets are possible in the short run.

b. The market demand curves for all labor groups are highly price inelastic.

c. Wages have little or no effect on the supply curves of labor.

d. The government must step up in to ensure that enough people enter unskilled occupations.

e. Wage differentials will tend to persist over time.

Question

Business

Victoria Benson

3 February, 14:21

The existence of noncompeting groups and other occupational differences in labor markets means that

a. Homogeneous, competitive labor markets are possible in the short run.

b. The market demand curves for all labor groups are highly price inelastic.

c. Wages have little or no effect on the supply curves of labor.

d. The government must step up in to ensure that enough people enter unskilled occupations.

e. Wage differentials will tend to persist over time.

+2

Answers (1)

Know the Answer?

Hunter Hudson · Answer 1

The correct option here is E).

Explanation:

The reason why non competing groups exit in the labor market is due to the difficulties, which arises in way of mobility of labor from high to low paid employments.

And because of existence of such groups, the wage differentials (which is difference in wages between different skilled workers in same industry or workers with same same skills, working in different industries) will continue to exist over time.