Consider the Diagram for a Labour Market in Which the Relevant

question 10

Multiple Choice

Consider the diagram for a labour market in which the relevant job attribute is the instability of the hours. In other words, less stable jobs are characterized by irregular hours, with no guarantee of a full time job, but with the possibility of overtime hours some weeks. What would the curves look like?

• A) The model cannot be used for this situation
• B) Positively sloped isoprofit curves and negatively sloped isoutility curves
• C) Negatively sloped isoprofit curves and positively sloped isoutility curves
• D) Negatively sloped isoprofit and isoutility curves
• E) Positively sloped isoprofit and isoutility curves

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