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Fact 9.2.1 You May Be Paid More (or Less)Than You Think
It's so hard to put a price on happiness,isn't it? But if you've ever had to choose between a job you like and a better-paying one that you like less,you probably wished some economist would tell you how much job satisfaction is worth.Trust in management is by far the biggest component to consider.Say you get a new boss and your trust in management goes up a bit (say,up 1 point on a 10-point scale).That's like getting a 36 percent pay raise.In other words,that increased level of trust will boost your level of overall satisfaction in life by about the same amount as a 36 percent raise would.
Source: CNN,March 29,2006
-Refer to Fact 9.2.1.The news clip implies that the marginal rate of substitution is ________,which is likely ________ implication.
A)constant;a correct
B)constant;an incorrect
C)decreasing;an incorrect
D)decreasing;a correct
E)incorrect;an incorrect

Question

Quizplus · Accepted Answer

The news clip implies a constant marginal rate of substitution between trust in management and pay, which is likely an incorrect implication because the relationship between job satisfaction and pay is not linear or constant.

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