Figure 19-1 -Refer to Figure 19-1. Suppose the Local Labor Market Was

question 485

Multiple Choice

Figure 19-1
-Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $8 as shown. Which of the following compensation schemes could the graph be illustrating?

• A)An efficiency wage.
• B)Discrimination.
• C)A compensating differential.
• D)The superstar phenomenon.

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Definitions:

Assistance

The act of helping or providing aid to someone.

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A therapeutic approach that seeks to change undesirable behaviors through the systematic use of reinforcement and punishment.

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The acquisition of behaviors and knowledge through observation and imitation of others within a social context.