Consider two workers who are identical in every respect, including wages, except that one works in an industry whose workers are subject to a higher risk of long and frequent spells of uncompensated unemployment. Compared to the worker facing the lower risk of unemployment, the discounted expected present value of current and future earnings of the worker facing the higher risk of unemployment would be
A. unfair.
B. equal.
C. lower.
D. higher.
Answer: C
You might also like to view...
Hans can do 4 loads of laundry per hour, and he can type 6 pages per hour. Maria can do 12 loads of laundry per hour, and she can type 8 pages per hour. Hans’s opportunity cost of typing one page is:
A. 4 pages.
B. 6 pages.
C. 2/3 of a page.
D. 3/2 of a page.
E. impossible to compute without additional information.
Which firm has higher marginal costs?
a. Jim's Production b. Competitor's production c. They both have the same fixed costs d. Need more information
Refer to the above table. Assume the consumer spends his entire income. The price of hamburger is $1, the price of a movie is $6, and the consumer has $15. What is the consumer's optimum?
The problem of scarcity is confronted by:
A) industrialized societies. B) pre-industrialized societies. C) societies governed by communist philosophies. D) all societies.