Which of the Following Is an Example of a Compensating

question 376

Multiple Choice

Which of the following is an example of a compensating differential?

• A) paying workers with more years of experience higher wages than workers with fewer years of experience, all else equal
• B) paying workers who work on the night shift higher wages than workers who work the day shift, all else equal
• C) paying accountants who have passed the Certified Public Accountant exam higher wages than accountants who have not passed it, all else equal
• D) paying workers with PhDs higher wages than workers with BAs, all else equal

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