In the Standard Theory of Compensating Differentials, a Worker's Reservation

question 9

Multiple Choice

In the standard theory of compensating differentials, a worker's reservation price is

• A)the amount of money it takes to entice the worker into accepting a risky job.
• B)the amount of money it costs a worker to take a risky job.
• C)the amount of money a worker loses for not taking any job.
• D)the amount of money it costs a worker to take a safe job.
• E)the difference between the wage paid in firms offering risky jobs and the wage paid by firms offering safe jobs.

---

Definitions:

Stable Ecosystem

An ecosystem that remains relatively constant in its composition of species and the transfer of energy over time, demonstrating resilience to disturbances.

Balanced Ecosystem

An ecological state where natural systems are in harmony, with stable populations and sustainable interactions among organisms and their environment.

Matter Cycle

The movement and exchange of organic and inorganic matter back into the production of living matter, involving processes like the carbon and nitrogen cycles.

Ecological Pyramid

A graphical representation that shows the biomass or bio productivity at each trophic level in a given ecosystem.