On Average, Electricians Who Work on Dangerous High-Voltage Power Lines

question 330

Multiple Choice

On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to

• A)the marginal product of labor.
• B)the marginal product of capital.
• C)diminishing marginal returns.
• D)a compensating differential.

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Interest Rate

The percentage of a loan amount charged by lenders to borrowers for the use of money, or the rate earned on deposit accounts.

Net Present Value

A method used in capital budgeting to analyze the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The present value of a future amount of money or a series of cash flows, discounted by a certain rate of return.