When the wage paid to workers in job A increases relative to the wage in job B,then,ceteris paribus,the
A)non- monetary advantages of job B will decrease.
B)net advantage of job A will increase relative to job B.
C)monetary advantage of job A will increase,but not its net advantage.
D)net advantage of job B will increase relative to job A.
E)non- monetary advantages of job A will increase.

Question

Quizplus · Accepted Answer

When the wage paid to workers in job A increases relative to the wage in job B, ceteris paribus, the net advantage of job A will increase relative to job B. This is because higher wages in job A will increase the monetary advantage of working in that job, making it more attractive compared to job B.

When the Wage Paid to Workers in Job a Increases