Worker X Is Paid $20,000 More in a Dangerous Job

question 32

Multiple Choice

Worker X is paid $20,000 more in a dangerous job than what Worker X could make in safe jobs.Worker X values the job characteristic of safety at $15,000.If the government makes Worker X's job safe and if safe jobs continue to pay their current wage,then,assuming markets are competitive and wages can easily adjust

• A) Worker X will be $20,000 worse off.
• B) Worker X will be $15,000 better off.
• C) Worker X will be $5000 worse off.
• D) Worker X will be $20,000 better off.

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Definitions:

Underestimating Cost

The act of calculating or predicting a cost to be lower than it eventually turns out to be.

Personally Liable

The legal responsibility of an individual to fulfill a debt or obligation from their own assets.

Partnership Debt

Financial obligations for which all partners in a partnership are jointly and severally liable.

New Ovens

Recently manufactured or acquired cooking appliances designed for baking, heating, or drying food.