Jake and Zach Are Identical Twins Who Attended Grammar School

question 90

Multiple Choice

Jake and Zach are identical twins who attended grammar school through college together. Jake took a job as an engineer who does not have to travel out of the state. Zach took a job as an engineer who must travel out of state once a week. Jake earns $125,000 a year, and Zach earns $155,000 a year. Select the best explanation for this wage difference.

• A)Zach puts in less effort than Jake.
• B)Zach has less human capital than Jake.
• C)Zach receives a higher wage to compensate for the disagreeable nature of business travel.
• D)Jake's lower salary supports the signaling theory of education.

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Definitions:

Merger

The combination of two or more companies into a single entity, often to achieve synergy and enhance competitiveness.

Corporate Statements

Corporate statements are official documents or declarations issued by a company that communicate information on its activities, financial performance, and strategies.

Takeover Disadvantages

Potential negative impacts of a corporate takeover, such as job losses, cultural clashes, and increased debt.

Corporate Funds

Money or assets owned by a corporation, used in the operation of the business or for the benefit of its shareholders.