Assume That the Market-Clearing Wages Are $10 Per Hour in a Safe

question 8

Multiple Choice

Assume that the market-clearing wages are $10 per hour in a safe job and $18 per hour in a risky job. Then, at the completion of a war, many ex-soldiers who enjoy risky ventures enter the labor market. Which of the following is not a likely outcome of this change?

• A) Many firms that currently offer risky jobs will begin offering safe jobs.
• B) The fraction of people working safe jobs will decrease.
• C) The wage associated with risky jobs will decrease.
• D) The number of people working risky jobs will increase.
• E) The wage differential will decrease.

---

Definitions:

CPE

Continuing professional education, courses or activities required for professionals to maintain their licensing and competencies.

PE

Physical Education, a school subject focused on the development of physical fitness and skills.

CPH

If referring to Central Public Health, it's a sector or organization focused on promoting and protecting the health of the public; otherwise, clarification is needed for a specific definition.

Itinerary

A detailed plan or route of a journey, including destinations and expected times of arrival and departure.