Suppose There Are Two Types of Jobs-Safe and Risky

question 3

Multiple Choice

Suppose there are two types of jobs-safe and risky. Safe jobs currently pay $10 per hour. Risky jobs currently pay $20 per hour. The government intervenes in the market, mandating that all firms offer safe jobs and pay a wage of $10 per hour. Which of the following is true?

• A) Workers who originally worked safe jobs are helped by the policy.
• B) Firms that originally offered safe jobs are hurt by the policy.
• C) Workers who originally worked risky jobs are helped by the policy.
• D) Firms that originally offered risky jobs are hurt by the policy.
• E) No one is hurt by the new policy.

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Definitions:

Rising

Describes an increase or upward movement in metrics such as price, quantity, or value.

Base Year

A reference year used for comparative purposes in the calculation of indexes, such as the Consumer Price Index, to measure changes over time.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to measure inflation or deflation.

First Year

The initial period or starting phase of an entity, event, or process, often marking the beginning of measurement or assessment.