In Order for the Compensating Differential Associated with a Risky

Multiple Choice

In order for the compensating differential associated with a risky job to be negative (so that a risky job pays less than a nonrisky job) , it must be that

A) many workers are willing to work the risky job for free.
B) most workers prefer the risky job to the safe job when both wages are equal.
C) the number of risky jobs is less than the number of workers who prefer the risky job.
D) there is great demand for labor in both sectors.
E) the government mandates that the wages in the two sectors be equal.