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.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Self-Serving Bias

The common tendency to attribute successes to personal abilities and failures to external factors.

Defensive Attribution

A psychological process by which individuals assign causes to behaviors or outcomes in a way that defends their self-esteem.

Stereotype

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing, which can often lead to prejudiced attitudes or behaviors.