The Market-Clearing Wage Differential Between a Safe and a Risky

question 15

Multiple Choice

The market-clearing wage differential between a safe and a risky job is $5,000. Which of the following is not true?

• A)The marginal worker is indifferent between working the safe or the risky job.
• B)All but the marginal worker in safe jobs require a wage differential above $5,000 to accept a risky job.
• C)All but the marginal worker in the risky job require a wage differential below $5,000 to be indifferent between safe and risky jobs.
• D)The per-worker cost for any firm to change technologies to offer safe jobs in place of risky jobs is $5,000.
• E)The average per-worker cost of offering safe jobs exceeds $5,000 at the risky firms.

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Definitions:

Self-Distinctiveness

The tendency of individuals to perceive themselves as uniquely different from others in various aspects.

Individualist Cultures

Cultures that emphasize the importance of individual achievements and rights over group goals and cohesion.

Collectivist Cultures

Societies or groups where people prioritize the goals of the group over individual desires or goals, often emphasizing strong social ties and a high value on cooperation.

Narcissistic Individuals

People characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.