Which of the following is an assumption of economic theories of labour markets?
A)There is a huge advantage for a single employer to pay above the market rate.
B)Pay rates reflect only the base wage associated with employment.
C)People are homogenous and therefore interchangeable.
D)There is a huge advantage for a single employer to pay below the market rate.
E)Employers are not always interested in maximizing profits.

Question

Quizplus · Accepted Answer

Economic theories of labor markets often assume that workers are homogenous and interchangeable, meaning they have similar skills and productivity levels, which allows for the analysis of labor supply and demand without considering individual differences.

Which of the Following Is an Assumption of Economic Theories