Question

Beth is a college student looking for summer employment. She has two options. Firm X is employing lifeguards to patrol the beaches at an exclusive resort in Cancun, Mexico, while Firm Y offers her a job working in an office filing paper work and assisting with the ordering of office supplies. Given this information,A) Firm X may pay a wage that is higher than that of Firm Y because the work at Firm X is not very interesting.
B) Firm X may pay a wage that is lower than that of Firm Y because the job at Firm X has more desirable working conditions.
C) Firm Y will pay a wage that is higher than that of Firm X because more individuals will apply for jobs at Firm Y.
D) none of the above

Answer 1

Answer:

A) Firm X may pay a wage that is higher than that of Firm Y because the work at Firm X is not very interesting.

Explanation:

The Firm X is employing life guards for beach resorts in Cancun. The job of lifeguard requires more skills and efficiency. The job of life guard has undesirable features which make Firm X to pay more for the job of life guard. The Firm Y is offering a office job with simple paper filing work. Many candidates will apply for this job which makes Firm Y to offer low wage.