One Implication of the Theory of Compensating Differentials Is That

question 15

Multiple Choice

One implication of the theory of compensating differentials is that jobs in states with high income tax rates are likely to

• A) be associated with more fringe benefits.
• B) be associated with fewer fringe benefits.
• C) pay the same wage and offer the same fringe benefits package as the same jobs in lower-tax states.
• D) have worse working conditions.
• E) be seasonal in nature.

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Definitions:

Cultural Universal

Aspects or practices that are common to all human cultures worldwide, despite their vast diversities.

Dalit

A term for individuals belonging to the lowest caste in India, historically subjected to discrimination and social exclusion.

Sudras

Sudras represent the fourth and lowest class in the traditional Hindu social hierarchy, traditionally tasked with serving the other three classes.