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:
Verified
Q87: Which of the following is NOT the
Q88: Which of the following is TRUE?
A) The
Q89: Which of the following best describes the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents