Overview
Rycroft Chapter 5
Questions for Review and Practice (end of the Chapter)
#1 and 2 (15 points each)
Rycroft Chapter 6
#1 and 2 (15 points each)
Additional Questions:
1. Suppose that all workers and jobs in a hypothetical economy are homogeneous. Explain why no wage differentials would exist if this economy were perfectly competitive and information and mobility were costless. Explain why wage differentials would arise, if, on the other hand, information and mobility were imperfect and costly. (10 points)
2. Analyze why college professors generally earn less than their professional Ph.D. counterparts who are employed by corporations. (10 points)
3. Explain how the theory of investment in human capital relates to the notion of noncompeting groups and how the latter relates to the presence of equilibrium wage differentials (10 points)
4. Explain how each of the following relates to compensating wage differentials : a) seniority provisions b) racial segregation c) regional cost of living differences d) average wage rate in manufacturing jobs in Mississippi is lower than in Michigan (10 points)