--%>

Theory of wage differentials according to Adam Smith

Adam Smith’s theory of wage differentials is least consistent along with a case wherein a: (i) chef in a five-star restaurant earns a higher wage than a cook into a fast food restaurant. (ii) security guard for a U.S. firm into Baghdad is paid more than a security guard in Denver. (iii) bulldozer operator is paid more per hour in the winter in Alaska than in the summer. (iv) gas station in a small town pays clerks higher wages than are paid through an almost the same gas station across the street. (v) window washer in a high-rise building is paid more than any janitor in identical building.

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Managerial Economics

  • Q : Illustrates the internal economies of

    Illustrates the internal economies of scale?

  • Q : Define the difference between

    Define the difference between accounting and economic cost.

  • Q : What did professor Marshall illustrates

    What did professor Marshall illustrates about Law of Demand? Answer: According to Marshall “the amount demanded raises along with reduces in price and diminish

  • Q : What are the tools and techniques for

    What are the tools and techniques for demand estimation?

  • Q : Maximize utility in competitive

    Within the competitive resource market model, all households are assumed to sell the employ of resources in attempts to maximize: (w) income. (x) utility. (y) employment. (z) social welfare. I need a good answer on

  • Q : Purely competitive labor market The

    The individual household within a purely competitive labor market as: (w) has a perfectly elastic supply of labor at the market wage. (x) has a perfectly inelastic supply of labor at the market wage. (y) faces a perfectly elastic demand for its labor

  • Q : Illustrates terms total cost

    Illustrates the terms total cost, average cost and also marginal cost?

  • Q : Substitution Effect within Supply of

    When wage rates rise above $25 per hour in this figure given below, in that case the: (1) worker works more diligently to ensure that she keeps her job. (2) employer pays an excessively high efficiency wage. (3) income effect exceeds the substitution

  • Q : Marginal Resource Costs and Wage Rates

    For a profit maximizing competitive firm operating within a competitive labor market, therefore the: (w) marginal resource cost of labor is the same to the wage rate. (x) supply of labor is perfectly inelastic. (y) production quota is

  • Q : Explain about input output table method

    Explain about input output table method.