Which of the Following Is an Example of Compensating Differentials

question 141

Multiple Choice

Which of the following is an example of compensating differentials affecting wages?

• A)a lawyer receiving a higher wage than a cleaner as the supply of lawyers is less than the supply of cleaners
• B)a highly educated civil engineer receiving a higher wage than his peers as she has a higher value of marginal product of labour
• C)a doctor foregoing $100 000 in income to volunteer in a developing country
• D)workers who work nightshift being paid the same as workers who work during the day

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Definitions:

Protective Service Workers

denotes individuals employed in sectors aimed at ensuring public safety and protection, such as police officers, firefighters, and security guards.

Production Workers

Employees directly involved in the manufacturing process of goods, including operating machinery and assembling products.

Sales Workers

Individuals employed to sell goods and services to customers, often working on commission.

Agency Shop

A place of employment where the employer may hire either labor union members or nonmembers but where those employees who do not join the union must either pay union dues or donate an equivalent amount of money to a charity.