Jackson is considering two different jobs, and is indifferent to both of them although one pays $20 per hour and the other pays $25 per hour. This must mean that
a. the higher-paying job must be more dangerous than the lower-paying job
b. the higher-paying job enjoys a compensating wage differential of $5 per hour
c. Jackson doesn't really need the money
d. the lower-paying job enjoys a compensating wage differential of $5 per hour
e. the higher-paying job enjoys a compensating wage differential of $20 per hour
B
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When a country imports a good, the ________ to consumers is ________ the ________ to producers
A) loss; smaller than; gain B) loss; larger than; gain C) gain; smaller than; loss D) gain; equal to; loss E) gain; larger than; loss
Define import substitution. Evaluate the success of import substitution strategies in developing countries
What will be an ideal response?
Acme Widget tells investors it wants to build a new widget factory and sell investors $10,000,000 in bonds to finance it
Once they have raised the $10,000,000 the owners of Acme Widget use the funds to finance a trip to Atlantic City to try out a new scheme they have devised to win at blackjack. This is an example of A) the adverse selection problem in financial markets. B) the moral hazard problem in financial markets. C) the difficulty lenders have in distinguishing good from lemon firms. D) the problems with using rational expectations in financial markets.
If a monopolistically competitive firm is producing 450 units of output and at this output level, the price is $15 and the average total cost is $12, the firm profit/loss is equal to ________.
A) -$1,525 B) $1,350 C) -$1,350 D) $1,525