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With Reference to Behavioural Economics, in the Context of Compensating

Question 8

Multiple Choice

With reference to behavioural economics, in the context of compensating differentials, all of the following statements apply except that:


A) It is based on laboratory experiments in which the choices of workers are observed.
B) The labour market will generate compensating differentials in order to deal with job-related amenities and disamenities.
C) It gives reasons for why people ignore major infrequent risks or possible disamenties of the job.
D) It investigates how individuals make job-related choices (such as working conditions) based on imperfect information.
E) It makes a case for government intervention and regulation in the workplace.

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