Compensating Differences in Wages

question 129

Multiple Choice

Compensating differences in wages

• A) compensate workers for differences in their human capital.
• B) reward workers differently based on differences in the desirability of jobs.
• C) describe the tendency for the wages of all occupations to adjust to the median level.
• D) do not exist if jobs have different nonmonetary characteristics.

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Definitions:

Slippery Slope Fallacy

A logical fallacy that occurs when an argument falsely assumes that one action will lead to a series of other actions resulting in a negative outcome, without providing evidence for such a causal chain.

Fallacy Of Composition

The erroneous reasoning that what is true of the parts must also be true of the whole.

Fallacy Of Division

A logical fallacy that occurs when one assumes that something true of a whole must also be true of its parts.

Hasty Generalization

A logical fallacy where a conclusion is drawn from insufficient evidence or sample size.