Econ 315 Latest Exam 3 Questions With Already Passed Answers Rated A+.

If wages are above equilibrium... - Answer excess quantity supplied surplus of labor wages eventually decrease If wages are below equilibrium... - Answer excess quantity demanded shortage of labor wages eventually increase Determinant of supply - Answer Wages of other occupations nonwage income preference of work nonwage aspect of job number of qualified suppliers With perfect information and mobility, what happens? - Answer People leave market B (decrease in supply) -wages increase in B -quantity decrease in B People enter market A (increase in supply) -wages decrease in A -quantity increase in A What causes the wage differential in the model? - Answer Decreased labor supply for a job that has undesirable job characteristics and an increased labor supply for the alternatives job. What effect can skill differentials have on compensating differentials? - Answer Skill differential can increase, decrease, or reverse wage differences caused by compensating differential Why do you think most "good" jobs also high paying - Answer Skill differential offsets compensating differential