The slope of the indifference curve in a hedonic wage model is the marginal rate of substitution (MRS) between consumption and the non-wage job attribute.Economically, this MRS is:
A) the bribe that is necessary to completely compensate the worker for a unit increase
In the non-wage job attribute.
B) the increase in wage that a worker is willing to forgo for a 1 percent increase in
His fatality risk.
C) negative if the non-wage job attribute is a good.
D) always equal to zero at the worker's utility maximizing point.
E) increasing with age.
Correct Answer:
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