The market-clearing wage differential between a safe and a risky job is $5,000. Which of the following is not true?
A) The marginal worker is indifferent between working the safe or the risky job.
B) All but the marginal worker in safe jobs require a wage differential above $5,000 to accept a risky job.
C) All but the marginal worker in the risky job require a wage differential below $5,000 to be indifferent between safe and risky jobs.
D) The per-worker cost for any firm to change technologies to offer safe jobs in place of risky jobs is $5,000.
E) The average per-worker cost of offering safe jobs exceeds $5,000 at the risky firms.
Correct Answer:
Verified
Q2: The equilibrium hedonic wage function is most
Q3: A hedonic wage function could be applied
Q7: When a worker and firm are matched
Q9: The supply curve of labor to risky
Q11: Risk-averse workers
A) have shallow wage-risk indifference curves
Q11: Abby's reservation price for working in a
Q12: Suppose there are two types of jobs-safe
Q14: The value of life is calculated by
Q19: Which of the following is not a
Q20: The cost of offering safe versus risky
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