Suppose everyone is highly productive, college educated, hard-working, etc. Peop
ID: 1118850 • 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
The job of a trash collector is not something that a person voluntary choose. There is a difference in the wage rate of different professions according to the skill required and the demand for that particular skill. Actors celebrities and other artists or paid quite hefty price while the other professions such as a job of a trash collector that is paid poorly. Do the demand for trash collection is not that high, the supply is low because not many people choose this as their profession. Now coming to the fact that who actually wants to be the trash collector, we can analyse that there are unemployed workers in the nation who are not able to find job anywhere else in the country. They may be structurally unemployed and there is skill is no longer valid in the nation. They may be willing to work but not willing to learn any new skill. Trash collection is the least skilled job and hence there is a chance that those who are trash collectors are the ones who were not able to find job anywhere.