Assume That the Market-Clearing Wages Are $10 Per Hour in a Safe

Multiple Choice

Assume that the market-clearing wages are $10 per hour in a safe job and $18 per hour in a risky job. Then, at the completion of a war, many ex-soldiers who enjoy risky ventures enter the labor market. Which of the following is not a likely outcome of this change?

A) Many firms that currently offer risky jobs will begin offering safe jobs.
B) The fraction of people working safe jobs will decrease.
C) The wage associated with risky jobs will decrease.
D) The number of people working risky jobs will increase.
E) The wage differential will decrease.