In Order for the Compensating Differential Associated with a Risky

question 25

Multiple Choice

In order for the compensating differential associated with a risky job to be negative (so that a risky job pays less than a nonrisky job) , it must be that

• A) many workers are willing to work the risky job for free.
• B) most workers prefer the risky job to the safe job when both wages are equal.
• C) the number of risky jobs is less than the number of workers who prefer the risky job.
• D) there is great demand for labor in both sectors.
• E) the government mandates that the wages in the two sectors be equal.

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Definitions:

Slave States

States in the United States before the Civil War where slavery was legally practiced.

Union

The term can refer to the United States during the Civil War, representing the northern states that opposed the Confederacy, or to a general concept of unity among people or states.

Seceded

The act of formally withdrawing from an organization, alliance, or nation to become independent or join another entity.

Abolitionist Movement

A movement before and during the American Civil War which sought to end the practice of slavery in the United States.