George and Brad Are Waiters at a Local Restaurant

question 115

Multiple Choice

George and Brad are waiters at a local restaurant. The female customers think that George is better looking than Brad. If George earns more than Brad, this could be an example of each of the following except

• A)customer preferences.
• B)discrimination.
• C)a beauty premium.
• D)a compensating differential.

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Definitions:

Turnover Costs

Expenses associated with replacing personnel, including recruiting, hiring, and training new employees.

Minimum Wage

The lowest legal hourly pay rate that employers can offer to workers.

Quantity Supplied

The total amount of a product or service that sellers are willing and able to sell at a given price, over a specified period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.