Which of the Following Is an Example of a Compensating

question 247

Multiple Choice

Which of the following is an example of a compensating wage differential?

• A)Nurse anesthetists are paid less than anesthesiologists (who have medical degrees).
• B)Workers in a uranium mine receive higher wages than if they worked in other jobs that require the same level of skills.
• C)In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs.
• D)Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.

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Definitions:

Single-Country Funds

Investment funds that focus on securities from a specific country, offering exposure to the economic performance and growth of that nation.

Mutual Funds

Funds that gather capital from various investors to buy an assorted mix of stocks, bonds, or other financial instruments.

EAFE Index

A stock index that measures the equity market performance of developed markets outside of the U.S. and Canada, often used as a benchmark for international investors.

Non-U.S. Stocks

Shares of companies that are based outside of the United States, often included in investment portfolios for geographical diversification.