If a Worker Is Indifferent Between a Job with a Wage

question 154

Multiple Choice

If a worker is indifferent between a job with a wage of $12 per hour and a job with a wage of $15 per hour,then the

• A)higher-paying job enjoys a compensating wage differential of $3 per hour.
• B)higher-paying job enjoys a compensating wage differential of $15 per hour.
• C)higher-paying job is intrinsically more attractive than the lower-paying job.
• D)worker's preferences are not rational.

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Definitions:

Necessaries

Basic needs or essential services required for individuals to maintain a standard of living, such as food, clothing, and shelter.

Contractual Liability

The legal obligations arising from contracts entered into by an entity or individual.

Age of Majority

The legally recognized age at which an individual is considered an adult and capable of making certain legal decisions.

Misrepresent

To provide false or misleading representations about something, often with the intent to deceive.