Question # 2
Question: Why are real wages in the United States higher in other countries? I the labor force itself responsible for the higher wages of American workers? Explain.
Answer: The real wages of the American jobs are for more because of the vast productivity and output created by the aspects of education, more productive machines, and the benefits of an efficient economic organization that other countries do not provide their workforce. The production of an American worker is on the average eight time that of workers in other countries. The fact of the matter is the reason for the higher earnings is because they produce more, which implies that the labor force sets the bar for the higher wages based on the amount of work that is done. Question # 3
Question: Indicate major sources of earnings differences between (a) lawyer and minister; (b) an accountant and elementary school teacher; (c) a business executive and a social worker, (d) a country lawyer and a Wall Street Lawyer; (e) an experienced skilled craftsman and a 20 year old high school dropout; (f) an upper story and a ground-floor window washer?
Answer: The major source difference between all of these jobs depends on the difference in workers, the difference in jobs, and the immobility or resources. The difference in workers encompasses productivity, specialized skills training, and education. The differences in jobs include location, working conditions, and the opportunity for training for skilled work experience. The immobility of resources deals mainly with temporary changes in disequilibrium in markets and institutional restrictions for tings such as licensing and union-imposed restraints. The individual explanation of the differences is