The Equilibrium Hedonic Wage Function Is Most Likely

question 22

Multiple Choice

The equilibrium hedonic wage function is most likely

• A) horizontal as no firm will overpay for workers.
• B) horizontal as firms will choose their optimal level of safety.
• C) a single point, as all firms will choose the same level of risk, and consequently all workers will be paid the same wage.
• D) upward sloping as firms that offer riskier jobs usually pay higher wages.
• E) downward sloping as firms that offer riskier jobs are usually able to pay lower wages.

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