Which of the Following Is Not Correct

question 38

Multiple Choice

Which of the following is not correct?

• A) A person may be paid a wage higher than he or she is worth, if he or she works in a risky profession.
• B) A person in a risky profession will likely be paid more than a person of equal skills in another profession.
• C) It is possible that a person will turn down a higher-paying job because his or her current job provides many nonmonetary benefits.
• D) By increasing his or her human capital, a worker can expect to receive a higher wage.
• E) If there were no compensating wage differential, there would be a shortage of workers in risky professions.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a company's profit that includes all incomes and expenses except interest and income tax expenses.

ROCE

Return on Capital Employed; a measure of a company's profitability in relation to its capital, indicating how efficiently capital is being utilized to generate profits.

After Tax Cost

The net cost of an investment or financing option after taking into account the effects of taxes.

Financial Leverage

Applying borrowed resources to escalate the potential profits of an investment.