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Suppose That Jobs a and B Are Equally Attractive, Requiring

Question 92

Multiple Choice

Suppose that jobs A and B are equally attractive, requiring the same amount of skills, education, and training. It is suddenly learned that working at job B will lower your life expectancy by 4.5 years. What will happen in the labor markets for jobs A and B?


A) The supply of labor in job B will increase to take advantage of the higher wages.
B) Labor supply in job B decreases, causing the wages to rise for job B, and labor supply in job A increases, causing wages to fall for job A.
C) Labor demand in job A increases, causing the wages to rise for job A, and labor supply in job A increases, causing wages to fall for job A. Thus, the effect on wages in job A is ambiguous.
D) Labor supply in job B increases, causing the wages to rise for job B, and labor supply in job A decreases, causing wages to fall for job A.

Correct Answer:

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