The Hypothesis of Equal Net Advantage Explains Why

question 114

Multiple Choice

The hypothesis of equal net advantage explains why

• A)two workers doing the same job in the same office are sometimes paid different wage rates.
• B)higher wages must be paid to entice workers to accept less desirable occupations or a less desirable location.
• C)the supply of unskilled labour in Canada is as great as it is.
• D)a hard-working employee may get paid less than other employees.
• E)lower wages are paid to workers with less qualifications.

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Definitions:

Present Value

The present worth of a sum of money or series of cash flows anticipated in the future, calculated using a certain rate of return.

Consumption Plan

An outline of how individuals or households intend to allocate their income towards consumption goods and services over a period.

Interest Rate

The cost of borrowing money or the reward for saving it, typically expressed as a percentage of the principal amount per year.

Interest Rate

The cost of borrowing money or the return for lending money, typically expressed as a percentage.