When Joe, who is among the highest-paid workers in a field in which there are numerous job openings across the nation, recently became unemployed, his opportunity cost of job search is
A) average, so the length of his period of unemployment is likely to be long.
B) relatively high, so the length of his period of unemployment is likely to be short.
C) relatively low, so the length of his period of unemployment is likely to be long.
D) relatively high, so the length of his period of unemployment is likely to be long.

Question

Quizplus · Accepted Answer

Joe's opportunity cost of job search is relatively high because he was among the highest-paid workers. This means he is likely to accept a new job quickly to minimize the loss of income, leading to a shorter period of unemployment.

When Joe, Who Is Among the Highest-Paid Workers in a Field