If you can think of any, please elaborate.
2007-04-30 06:48:26 · 3 answers · asked by PlasticTrees 2 in Social Science ➔ Economics
because workers IN THEORY are not as well informed of the prices and hence their expectations of the real and nominal wages are not always correct.
workers are also irrational, they fall for the money illusion. when price levels are high and they get a wage raise, they might see it as an increment. but it might not even be enough to cover the price level raise.
also there are minimum wages rules, trade unions which does not allow them to change wages easily.
PS- the first answerer has a weird sense of humour.
2007-04-30 07:34:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Lawyer from £100,000 per year.
Supply very inelastic. This is because it takes along time to train and qualify to be a lawyer.
Firms are willing to pay a high wage for Lawyers because they have a high Marginal Revenue Product. Basically a good lawyer can save £1m for companies, if they win the right case.
Cleaners in McDonalds get low pay £12,000 per year; this is because little qualifications are required; they add much less to the profit of the company. THerefore elastic supply and low demand
2007-04-30 08:10:15 · answer #2 · answered by RICHARD P 1 · 0⤊ 0⤋
Because people value different kinds of work differently. That's why hookers make more than teachers.
2007-04-30 07:29:40 · answer #3 · answered by squeezie_1999 7 · 0⤊ 1⤋