When a Worker and Firm Are Matched on the Hedonic

question 7

Multiple Choice

When a worker and firm are matched on the hedonic wage function, it is implied that

• A)the worker cannot receive a higher wage at any other firm.
• B)the worker-firm match is efficient in the sense that neither the worker nor the firm could become better off with a different match.
• C)the firm could increase its profits by offering a safer job as doing so would allow the firm to lower the wage it pays.
• D)the hedonic wage function must be very steeply sloped to ensure that the worker doesn't accept a better paying job.
• E)the worker receives no surplus from the match.

---

Definitions:

Brainstorming

A creative group problem-solving technique that involves generating a large number of ideas to solve a problem without critical judgment.

Deductive Reasoning

A method of reasoning in which a decision is made based on the congruence of multiple assertions commonly accepted as truth.

Semantic Networking

A method used in cognitive psychology to model how human memory organizes information, where concepts are linked together based on their meanings.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions, fostering innovation and problem-solving.