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From course:

Economics A Level (DONEEEEEEE)

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Question:

What occurs when Imperfect Information exists in a Labour Market?

Author: eric_galvao



Answer:

-Perfect Information refers to Workers knowing Everything about Every Job and Employers knew Everything of every Potential Worker. This obviously is not the Real World so -Many Workers end in Jobs that are not the Best Fit for them, which may not be paid Enough for them. Or have no Job at all -Employers have Workers that are not as Productive as they could be, leading to a less Competitive Firm


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