Refer to the figure above.If the labor market works efficiently and workplace standards are managed such that each firm manages risk individually (there is not a set standard) then
A)the wages in high exposure jobs will be lower than those high exposure risk jobs
B)the wages in high and low risk jobs will be equal, which is inefficient
C)the wages in low exposure risk jobs will be higher than those in high exposure risk jobs
D)as long as the labor market is competitive and participants have knowledge, the labor market will compensate workers experiencing higher risk with higher wages

Question

Quizplus · Accepted Answer

In an efficient labor market, higher risk jobs typically offer higher wages to compensate workers for the increased risk, assuming workers are informed and the market is competitive.

Refer to the Figure Above