If a Worker Is Indifferent Between a Job with a Wage

question 240

Multiple Choice

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.

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Definitions:

Title

A legal term referring to the legal rights of ownership and possession of a particular property or asset.

Encumbrances

Legal claims or liabilities on property or assets that may affect their use or transferability, such as mortgages or liens.

Obligation

A legal or moral commitment to perform or refrain from performing some action.

Commission

A fee paid to an agent or employee for facilitating a sale or service.