Question: . Suppose that a worker values jobs by both the wage rate and the workplace collegial ity. The woker's utility is strictly increasing in the


. Suppose that a worker values jobs by both the wage rate and the workplace collegial ity. The woker's utility is strictly increasing in the wage rate but strictly decreasing in the chance of being bullied in the workplace. Below is a graph plotting three indifferent curves that pass through points A, B, C, and D respectively. Each of points A, B, C, and D indicates a job with different wage rates and chances of be ing bullied in the workplace. Given the above information, which of the following statements is incorrect? chance arm-mm Bullying (a) If the worker is offered a choice between job A and. job D, she may choose job A. (b) If the worker is offered a choice between job B and job D, she may opt for job D. (c) If the worker is offered a choice between job C and job D, she may opt for job C. (d) If job B gives the worker a utility level of 10, job C also gives the worker a utility level of 10. (e) Because of the compensating wage differential, if the worker is offered job A and job D, the worker would choose job A despite that there is a higher chance to be bullied. (f) If job B gives the worker a utility level of 20, job D may give the worker a utility level of 22. (g) If job D gives the worker a wage of 5 and a utility level of 8, job A may give the worker a utility level of ll). (h) If the worker could choose any job among jobs A, B, C, and D, job A would be chosen
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
