Differentials and disequilibrium, Managerial Economics

Assignment Help:

DIFFERENTIALS AND DISEQUILIBRIUM

In a free enterprise system, workers aim at maximizing their wages.  Hence, it would be expected that workers would move form low-paying industries to high-paying industries and the low-paying industries would raise wages so as to retain labour until wage rates were uniform for all workers.

In practice, however, we observe differentials in wages both between occupations and even within the same occupations.  Differentials arising from the characteristics of the occupations are called compensating or equalizing differentials, because they represent pay units made to equalize the net remuneration and compensate the workers for differences in their jobs.


Related Discussions:- Differentials and disequilibrium

Reasons for fluctuations in agricultural prices, REASONS FOR FLUCTUATIONS I...

REASONS FOR FLUCTUATIONS IN AGRICULTURAL PRICES Production depends on factors beyond the control of the producers e.g. weather, disease and pests.  Actual and planned output i

Demand curve, What is the difference between a movement along a demand or s...

What is the difference between a movement along a demand or supply curve and a shift of one of these curves? Why is it important to distinguish between the two? What mistake migh

What do you understand by equilibrium national income, a) What do you unde...

a) What do you understand by equilibrium National Income and to what extent is economic growth beneficial to an economy? b) Explain using both diagrams and mathematical tools,

Effects of fluctuations in exchange rates, Effects of Fluctuations in Excha...

Effects of Fluctuations in Exchange Rates When a country's currency depreciates, exporting firms may have competitive advantage but businesses which rely on imports for raw ma

Explain the confidence interval, 1.  According to an article in San Luis Ob...

1.  According to an article in San Luis Obispo Tribune July 21, 2006 37% of the college freshman and 48% of the college seniors carry a credit balance from month to month. Suppose

Opportunity cost, Opportunity Cost This is the amount that is sacrifice...

Opportunity Cost This is the amount that is sacrificed when choosing one activity over the next-best alternative.  In organization, an example of opportunity cost is seen in th

Demand-pull inflation, Demand-pull inflation is when aggregate demand exce...

Demand-pull inflation is when aggregate demand exceeds the value of output (measured in constant prices) at full employment.  The excess demand of goods and services cannot be met

How medical services are funded in canada, Based on the information given i...

Based on the information given in the Canada Health Act as well as the information given in your Study Guide, write a description of how medical services are funded in Canada. Be s

Current account, The Current Account This records all transactions inv...

The Current Account This records all transactions involving the exchange of currently produced goods and services and is subdivided into i.          Visibles: A record

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd