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I need help on these 4 microeconomic questions: Question 37 (2.5 points) A compensating wage differential is: 0 an extra wage that is above the
I need help on these 4 microeconomic questions:
Question 37 (2.5 points) A compensating wage differential is: 0 an extra wage that is above the equilibrium wage. 0 an extra wage that compensates workers for undesirable working conditions. 0 an extra wage that will make all workers willing to accept undesirable working conditions. 0 an extra wage that implies rms are no longer maximizing profits. Question 38 (2.5 points) Employer discrimination implies that 0 if the group discriminated against is small, there will be a wage differential in the market. 0 there will be no market wage differential. O co-workers and customers prefer one group of workers over another. 0 some employers give up prots to avoid hiring one group. Question 39 (2.5 points) According to Rawls's difference principle, which institution is preferred? Institution Person 1's utility Person 2's utility Person 3's utility X 50 350 200 Y 600 30 100 Z 40 40 40 Ox OY Oz IndifferentQuestion 40 (2.5 points) Suppose that in an economy composed of three people we can measure each person's utility cardinally. Suppose, too, that we can use three possible institutions A, B, C, and D to organize economic activity in this economy. The problem is to choose one of the four institutions. The utility of each person under each institution is given below. Institution Person 15' 3 utility Person 20 3 utility Person 3' 5 utility 500 According to Rawls's difference principle, which institution is preferred?Step by Step Solution
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