Which of the Following Is an Example of a Compensating

question 390

Multiple Choice

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

• A)Two workers with different undergraduate majors earn different salaries.
• B)Two workers with different years of experience earn different salaries.
• C)Two workers whose jobs entail different risks earn different salaries.
• D)Two workers with different levels of personal attractiveness earn different salaries.

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Definitions:

Favourable Treatment

Preferential treatment or advantage given to a person or group over others.

Protectionism

Economic policy measures implemented by a government to shield domestic industries from foreign competition, often through tariffs and quotas.

Cultural Miscues

Misunderstandings or errors in communication that occur due to differences in cultural norms and expectations.

International Business

Commercial transactions and activities that occur across national borders.