Which of the Following Is an Example of a Compensating

question 302

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 working conditions earn different salaries.
• D) Two workers with different levels of personal attractiveness earn different salaries.

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Definitions:

Assets

Economic resources or valuable items owned by an individual or business, capable of being converted into cash or used to generate income.

Credit Cards

Financial tools issued by banks that allow users to borrow funds within a pre-approved limit for purchases or cash advances, with the expectation of repayment with interest.

Debit Cards

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Large Denomination

Refers to currency notes or bonds that are issued in high face values, often preferred by investors seeking to transfer or store large amounts of value.