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In a Hedonic Wage Model,heterogeneous Workers and Firms Engage in Positive

Question 16

Multiple Choice

In a hedonic wage model,heterogeneous workers and firms engage in positive assortative matching in equilibrium.Which of the following is an example of positive assortative
Matching?


A) Dangerous jobs are matched with brave workers and safe jobs are matched with
Wimpy workers.
B) Workers who are comparatively brave are paid less than wimpier workers.
C) Workers who are not equally skilled are paid the same wage.
D) Workers who are more able have more education.
E) Firms that employ comparatively brave workers earn positive economic profits.

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