Which of the Following Comparisons Best Illustrates a Compensating Differential

question 484

Multiple Choice

Which of the following comparisons best illustrates a compensating differential?

• A)John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's.
• B)Karl's wage is higher than Kay's because Karl is very personable, and Kay is very gruff.
• C)Beth's wage is higher than Bill's because Beth's job may cause long-term health problems, and Bill's job will not impair his health.
• D)All of the above are good illustrations of compensating differentials.

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