Sally and Harry Both Work at the Local Factory Producing

question 37

Multiple Choice

Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the

• A)higher-paying job has a compensating wage differential of $3 per hour.
• B)higher-paying job has a compensating wage differential of $25 per hour.
• C)higher-paying job is intrinsically more attractive than the lower-paying job.
• D)factory is discriminating against Sally because she is a woman.

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Definitions:

Term Deposit

A type of bank deposit that is held at a financial institution for a fixed term or period of time, often yielding higher interest rates.

Matures

Refers to the final payment date of a financial instrument at which point the principal (and all remaining interest) is due to be paid.

Days

A unit of time measurement that typically represents a 24-hour period.

Loan

Funds lent with the anticipation of repayment plus an additional amount known as interest.