When the wage paid to workers in job A increases relative to the wage in job B,then,ceteris paribus,the
A)net advantage of job B will increase relative to job A.
B)non-monetary advantages of job A will increase.
C)non-monetary advantages of job B will decrease.
D)net advantage of job A will increase relative to job B.
E)monetary advantage of job A will increase,but not its net advantage.

Question

Quizplus · Accepted Answer

When the wage paid to workers in job A increases relative to the wage in job B, ceteris paribus, the net advantage of job A will increase relative to job B. This is because a higher wage in job A increases the monetary advantage of job A, which increases its overall net advantage compared to job B.

When the Wage Paid to Workers in Job a Increases