If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the
a. higher-paying job has a compensating wage differential of $2 per hour.
b. higher-paying job has a compensating wage differential of $12 per hour.
c. higher-paying job is intrinsically more attractive than the lower-paying job.
d. wage in the higher-paying job must eventually fall due to competition.
a
You might also like to view...
If bananas were money, which of the following functions of money would be the most difficult for bananas to satisfy?
A) medium of exchange B) store of value C) standard of value D) serving as a commodity
The five most important variables that determine the level of consumption are
A) disposable income, wealth, expected future income, price level, and interest rate. B) wealth, savings account balances, checking account balances, stock portfolio balances, and bond portfolio balances. C) government purchases, saving account balances, wealth, interest rates, portfolio balances. D) government purchases, interest rates, income, taxes, and transfers.