9 - Labor Quiz#4 1 How is the market-compensating wage...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Labor Quiz #4 1. How is the market-compensating wage differential between safe jobs and risky jobs determined? a. From the intersectionof supply and demand. b. Where marginal cost equals marginal benefit. ©From the slope of the hedonic wage function. ., d. Where the MRTS equals the price ratio. 2. What is the impact of health and safety regulations on the utility of workers and on the profit of firms? a. Increase worker utility; increase profits. b. Increase worker utility; reduce profits. a. Decrease worker utility; increase profits. , @ Decrease worker utility; reduce profits. -— 3. HOW do we calculate the value of a statistical life? a. From the intersection of supply and demand. b. Where marginal cost equals marginal benefit. c. From the slope of the hedonic wage function. @Where the MRTS equals the price ratio. 4. Risky jobs reduce workers’ wellbeing when: a. Workers have no other well—paying job opportunities. b. Workers cannot adjust the level of risk in their jobs. @Workers do not have accurate information about risks.__ d. Firms place the burden of safety on workers. 5. The ”winnEr’s curse” is that: a. Fringe benefits are often valued at less than their market cost. 1). A worker who receives more desirable benefits than his colleagues is often faced with resentment. c. Fringe benefits reduce the amount that the firm can pay a worker. @ The workers who are most willing to accept a risky job are the ones who have underestimated the risk by the largest amount. " 6. In order for a fringe benefit to make a worker happier than cash compensation, it must be the case that: The worker values the benefit more than cash. . The firm provides the benefit to all its workers. he firm can purchase the benefit at lower cost than the worker can. '. The worker would not be able to purchase the benefit on his own. ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern