Asked by Tanya Woods on May 12, 2024
Verified
Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage aspects,the two firms offer the same job characteristics.We would expect:
A) wage rates at Ajax to be higher than at Acme.
B) wage rates at Ajax to be lower than at Acme.
C) wage rates at Ajax and Acme to be the same.
D) workers at Ajax would have to be monitored more closely than those at Acme.
Wage Rates
Wage rates are the standard amount of compensation given to employees for their labor, typically expressed per hour or day.
Job Characteristics
Attributes or aspects of a job that influence workers' motivation and satisfaction.
- Examine the concepts of compensating wage differentials and the factors contributing to wage disparities among workers.
Verified Answer
TE
Tuinesha EdwardsMay 14, 2024
Final Answer :
B
Explanation :
Given that working for Ajax is more pleasant than working for Acme, but all other job characteristics are the same, workers may be willing to accept lower wages for the more pleasant working conditions at Ajax. This is an example of compensating differentials, where differences in wages compensate for the non-wage aspects of different jobs.
Learning Objectives
- Examine the concepts of compensating wage differentials and the factors contributing to wage disparities among workers.