All of the Following Are Examples of Solutions to Coordination

question 72

Multiple Choice

All of the following are examples of solutions to coordination problems EXCEPT:

• A)drivers in the United Kingdom drive on the left side of the road.
• B)international airline pilots all speak English to make international communication easier.
• C)peacekeepers separate two armies in a civil war to stop the conflict.
• D)all firms producing compact discs use a single compatible format.
• E)countries allocate international flight paths to avoid midair collisions.

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Definitions:

Compensating Differential

The compensating differential is the difference in wages that arises to offset the non-monetary characteristics of different jobs, such as riskiness or unpleasantness.

Wage Disparity

The difference in wages earned by different groups of workers, often due to factors like gender, education, or ethnicity.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.

Efficiency Wage

A higher wage paid by employers to increase productivity by attracting better applicants, reducing turnover, and motivating employees.