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In the Standard Theory of Compensating Differentials, a Worker's Reservation

Question 9

Multiple Choice

In the standard theory of compensating differentials, a worker's reservation price is


A) the amount of money it takes to entice the worker into accepting a risky job.
B) the amount of money it costs a worker to take a risky job.
C) the amount of money a worker loses for not taking any job.
D) the amount of money it costs a worker to take a safe job.
E) the difference between the wage paid in firms offering risky jobs and the wage paid by firms offering safe jobs.

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