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If a Worker Is Indifferent Between a Job with a Wage

Question 240

Multiple Choice

If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the


A) higher-paying job has a compensating wage differential of $2 per hour.
B) higher-paying job has a compensating wage differential of $12 per hour.
C) higher-paying job is intrinsically more attractive than the lower-paying job.
D) wage in the higher-paying job must eventually fall due to competition.

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