Suppose everyone is highly productive, college educated, hard-working, etc. Peop
ID: 1116976 • Letter: S
Question
Suppose everyone is highly productive, college educated, hard-working, etc. People still differ in their preferences for jobswhile some would prefer to be doctors than lawyers, others prefer to be lawyers than doctors, and so onand everyone prefers to be a professional to being a trash collector, but as usual preferences vary across individuals. In order for this economy to function at all, someone needs to choose to be the trash collector. Who will be the trash collector, and in general terms how much will the job of trash collector pay?
Explanation / Answer
Wants and desires are not required for having a profession adopts you. You need skills for a particular job and that job must be available in the region of applying. This indicates why same jobs offer different compensation in different areas. Nobody is by desire, willing to be a trash collector. But there are deficient skills or constraints. Trash collection is one of the most undesirable job and it can be believed that nobody prefers to be a trash collector.
But they do exist in the economy and work efficiently. Just as a difficult job has limited supply, works like trash collection have extremely limited supply. And this primarily includes those workers who are less educated, less skilled and less resourceful. Given the nature of the job, the wages of a trash collector are extremely low, in comparison to other related jobs.