The cost of offering safe versus risky jobs in the highway construction industry vary across firms. In the end, we would expect the market equilibrium to
A. have firms that face a high cost of offering safe jobs to pay the lowest wages.
B. randomly match workers to jobs.
C. have firms randomly choose their level of safety.
D. match workers who dislike risk to the highest paying jobs.
E. match workers who dislike risk to firms that find it cheapest to offer safe jobs.
Answer: E
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The following table depicts both the product and labor markets for imported coffee. What is the total revenue when 15 workers per day are hired?
A) $5,000 B) $6,750 C) $7,350 D) $7,500
When a tax is placed on buyers:
A. the resulting price paid by consumers is the same as if the tax were placed on sellers. B. the resulting price received by sellers is the same as if the tax were placed on sellers. C. the equilibrium quantity will unequivocally decrease. D. All of these are true.